Unable to find a buyer or reach a restructuring deal with creditors, Toys "R" Us is planning to liquidate its USA stores, reports Bloomberg.
While the situation is still fluid, a shutdown of the USA division has become increasingly likely in recent days, said those people, who asked not to be identified because the information is private, the Los Angeles Times reported Friday.
Unless a buyer emerges soon (hi, Amazon?) Toys R Us may have no choice but to shutdown its USA operations and sell off its stock of bikes and trains and video games. Officials had hoped the US operations would emerge with a new business model and less debt.
In January, court documents revealed Toys "R" Us planned to shutter as many as 182 stores, including three in San Diego County.
Toys R Us received a $3.1 billion loan to keep stores open after the bankruptcy. Things are also quickly deteriorating in many overseas divisions.
As Bloomberg reports in describing the "fluid situation" at Toys, a winding down of the U.S. division has become increasingly likely in recent days according to "people, who asked not to be identified because the information is private". It's not yet clear what will happen to the Canadian unit, which filed at the same time as the US division.