The toy megastore Toys "R" Us is reportedly shutting down all of its USA stores this week after the bankrupt company was not able to find a buyer, according to reports last week.
The retailer, which filed for bankruptcy in September, has stopped making the payments without providing an explanation, said the people, who asked not to be identified because the matter is private.
Although Toys "R" Us first filed for bankruptcy back in September of a year ago, it wasn't until after the holiday season that the company's true struggle became apparent.
But what does that mean for parents shopping for the next must-have toy?
Toys "R" Us also announced in February that it would also close locations in Dedham, Millbury, Bellingham, Northborough and Framingham. The company filed for bankruptcy protection less than six ago.
The company has failed to find a buyer or reach a debt restructuring deal with lenders, leaving it with few options, people familiar with the situation said at the time. Now Toys "R" Us and other category killers like the now-defunct Sports Authority, Borders and Circuit City, are being upended by online retailers. The announcement is expected to happen this week, when the retailer is scheduled to appear in court for a bankruptcy hearing, the Wall Street Journal reported. Shares of those companies fell on Friday after Bloomberg reported about the possible liquidation, then dipped again on Tuesday.
"To our loyal customers: We've seen an fantastic outpouring of love and support in recent days and we truly appreciate it", the company tweeted Friday.
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