The already-bleak situation for the Toys R Us retail chain is getting grimmer amid reports the company is preparing to shut down all of its remaining stores. Some of the people said they can't get anyone to respond to questions at the retailer, which filed for bankruptcy in September and faces a $5 billion debt load. Toys R Us in January had announced it was going to shut down 182 locations, including five in upstate NY.
The company later announced plans to close around 182 of its stores.
The retailer is expected to announce this week that it's liquidating its entire USA operation, going out of business, and closing all of its 620 remaining stores. In a tweet last week, Toys R' Us said they've seen an incredible outpouring of love and they are still open for business.
The company also operates a Toys R Us and Babies R Us store across from Colonie Center and a Toys R Us store in Clifton Park that were not included on the list of closures but would be affected by the retailer's liquidation. Both Hasbro and Mattel saw a decline in sales a year ago, and now the toy companies are losing one of their biggest retailers.
The struggles of Toys "R" Us have taken a toll on the two largest toymakers, Hasbro Inc. and Mattel Inc.
Toys "R" Us reigned supreme in the 1980s and early 1990s, when it was one of the first of the "category killers" - a store totally devoted to one thing: toys.
"To our loyal customers: We've seen an unbelievable outpouring of love and support in recent days and we truly appreciate it", the company tweeted Friday. David Fiorenza, an economics professor at the Villanova School of Business, said online retailers gain an advantage with tax breaks if nationwide closures happen.