Toys R Us Prepares For Liquidation Of US Operations
Following the UK division of Toys “R” Us going into administration last week, its now being reported by Bloomberg that the company is preparing liquidation of its bankrupt US operations after it failed to find a buyer or reach a debt restructuring deal with its lenders.
While the company is still running, a shutdown of the US division has become increasingly likely, as it doesn’t appear like a buyer has been found.
Toys R Us enter into bankruptcy in the US back in September 2017, but Christmas sales fell short and they have previously announced closures of around 200 stores.
The closure of Toys “R” Us stores would hit the Toy Industry hard as it is around 15% of the market, though I’d expect the majority of other retailers would pick up the majority of this business, but it would impact on smaller toy companies who can only be found on shelves at Toys “R” Us, which wouldn’t usually appear at stores like Walmart.
And with more than 800 stores in the US, it certainly isn’t good news for employees.