Toy giant Toys "R" Us may close all of its USA stores as early as next week as the company prepares to liquidate its USA operations, according to CNN Money, Bloomberg and other financial publications.
The company has struggled to find a buyer or reach a debt-restructuring deal with lenders, leaving it with few options. The company is now saddled with around $5 billion in debt, and it has found it hard to find relief.
Toys "R" Us files for bankruptcy late Tuesday night.
Fifteen percent of US toy revenue.
The company had been working to restructure its debt - almost $5 billion worth - according to a story from Bloomberg News.
Bankrupt toy seller Toys "R" Us could liquidate all of its United States stores as early as next week, according to reports. While the fate of Babies R Us is unclear, it would be safe to assume the company would close those stores as well.
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Both large and small toymakers were affected by the news.
The toy store chain entered bankruptcy in September, and sales did not get better over the holidays, Bloomberg reports.
One company that could benefit from the model: Toys R Us.
"The toy industry remains in flux", Gerrick Johnson, industry analyst at BMO Capital Markets, said in a research note on Friday, noting toy industry executives were concerned about the sector's health in 2018. According to The Washington Post, Hasbro dropped $2.52 (2.7 percent) to $90.86 per share, while Mattel sank $1.01 (6.3 percent) to $14.96.
Toys R Us collapsed into administration at the end of February.
The decision about how many additional stores it will liquidate could come on Monday, following a bankruptcy hearing in Richmond, Virginia, sources told the Wall Street Journal.