Toys R Us in the USA heading for liquidation

It is highly likely that Toys R Us in the USA will follow the UK operation and close down completely, as a buyer for the US business has not emerged.

Toys R Us in the USA entered bankruptcy protection last September, and has since been working on finding a buyer for the business or alternatively, coming to an agreement with lenders to restructure the company’s debt. Toy World magazine reports that these outcomes are looking increasing unlikely, and at this stage the US arm is likely to follow in the footsteps of the UK operation.

Disappointing trading over Christmas meant that a $3.1 billion loan secured in September has not been enough to turn around the retailer’s fortunes. Should the company go into liquidation, it is possible that some stores will be bought out if an interested buyer can be found, but likely that all of the stores will close after clearing through stock.

Toys R Us stores in the UK are expected to start closing in the next few days, as the company offers clearance discounts of between 10% and 60%.

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