Toys "R' Us had a worse than expected holiday season and had already filed for bankruptcy past year". Reuters said the chain, which filed for bankruptcy protection, has been unable to find a buyer or restructure its debt.
Although most of Toys "R" Us' worldwide divisions were not included in the company's bankruptcy claim, some are now beginning to experience blowback.
Bloomberg has reported that Toys R Us is planning a complete liquidation of its USA operations that are now under bankrupt protection as it has not located a buyer or reached a restructuring deal for its debt with lenders.
Toys R Us started in 1948 as a baby-furniture store in Washington, D.C. Nine years later, founder Charles P. Lazarus switched the store's focus to toys and shifted operations to Rockville, Md.
In January, the company announced it would be closing more than 180 of its almost 880 US stores, including about two-dozen in California, affecting 4,500 workers.
If Toys "R" Us is unable to fashion a last-minute miracle, the end of its 70-year run would be the latest blow to the reeling retail industry.
That could mean the shutdown of its US division, Bloomberg reports. It had initially filed for Chapter 11 bankruptcy, which reorganizes debt.
The company has been shedding sales in large part due to growing competition from online retailers like Amazon. The decline in sales continued until 2018 when the company announced plans to close 182 stores.
We will keep you up to date on if the Lubbock location of Toys "R" Us closes.
The rumors affected toy companies in the stock market on Friday; shares for Hasbro fell by 3.5 percent and 7 percent for Mattel, CNN Money reports. "They would have to be willing to improve e-commerce and to improve the stores".
A spokeswoman for the US division declined to comment in an email Thursday. In the early 1990s, sales were increasing at a 10 percent annual clip.