Toys 'R' Us considers closing all U.S. stores

Mar 10, 2018, 00:35
Toys 'R' Us considers closing all U.S. stores

Toys "R" Us is prepping to liquidate its USA operations, according to several media reports. That quick descent meant the retailer entered bankruptcy without a plan for how to restructure its debt, which made finding a way to exit more hard.

Fortune reports the shutdown of USA operations is a "fluid" situation, but closing all the company's stores is becoming likely.

In January, court documents revealed Toys "R" Us planned to shutter as many as 182 stores, including three in San Diego County.

Toys R Us did not have the holiday performance that would have put lenders in a better position to negotiate favorable terms for the chain.

The longer the stores stay open, the more rent Toys R Us will owe to its landlords.

The company was trying to re-negotiate its $5 billion debt load. The company's huge interest payments also forced it to use resources that could have gone toward improving technology and operations.

The toy retailing giant appears to be running out of time, and money - pushing closer to having to close the doors of the entire chain. The company has about another 800 stores worldwide.

While this may be yet another nail in the coffin of traditional retail, perhaps we can at least look forward to one last insane fire sale. In the early 1990s, sales were increasing at a 10 percent annual clip. Hasbro fell more than 3 percent, while Mattel stock declined almost 5 percent.

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