Toys R Us is considering liquidating all U.S. stores amid troubled bankruptcy restructuring, according to multiple media reports.
The retail chain has failed to find a buyer or reach a deal to restructure its debt, Bloomberg reported. Those issues, coupled with disappointing holiday sales, means liquidation of all stores is a strong possibility. The report cites anonymous sources close to the company.
New Jersey- based Toys R Us filed for bankruptcy in September, bolstered soon after by a $3.1 billion loan. Steep drops in holiday sales, along with concerns from vendors impacting shipments, complicated the restructuring efforts and led to the latest issues.
Toys R Us has about 800 stores in the U.S. In January, it announced it was closing 180 additional stores on top of a series of shutdowns that took place last year. Store closing sales are set to begin in February with the majority of stores ceasing operations by mid-April.
Two Toys R Us stores in Alabama were originally set to close, which included the Summit location. The store in Tuscaloosa, located at 2600 McFarland Blvd. was the other. Company officials later said the Summit location would remain open. Other Toys R Us locations in Alabama are in Dothan, Foley, Hoover, Huntsville, Mobile and Montgomery.