Toys R' Us Reportedly Considering Closing All Its US Stores

The beleaguered toy giant is currently closing around half of its U.S. stores, but they might not stop there.

A new report says that Toys "R" Us, who filed for Chapter 11 protection in September of last year, might conclude its reorganization efforts and instead liquidate all of its stores in the United States (via Wall Street Journal). That is a far cry from the message the retailer sent to customers after the bankruptcy announcement, but sources close to the situation say that plans changed after the weak 2017 holiday season.

The company had previously announced plans to change over a portion of its stores to dual brand retailers (Toys "R" Us and Babies "R" Us), and while store closings were coming, they were intent on coming out a more streamlined company. It seems though that they haven't been able to find solutions to the $5 billion in debt it currently holds, and things in the U.K. aren't looking any better at the moment, as that division just started the administration process.

Those same sources say that an announcement on the current plans for the company is expected on Monday when representatives for the company will appear at a bankruptcy hearing. It should be clearer afterward just how much the company will liquidate.

Toys "R" Us CEO Dave Brandon released an email to customers after the original announcement, saying that the filing is "designed to strengthen our financial position and allow us to reinvest in our business. This was a proactive and voluntary move that gives us the opportunity to reset and do the things necessary to continue to earn your business now and well into the future. "

Brandon ended the email with one more assurance. "No matter how you choose to shop with us, know that you can continue to count on us for an outstanding experience," Brandon said. "We have been in the business of bringing joy to kids for nearly seven decades, and we welcome the opportunity to serve you this holiday season and long into the future."

It remains to be seen if the company can weather this storm, but hopefully, it can make it happen.