Leon Neal/Getty Images(NEW YORK) — Toys “R” Us is preparing to liquidate its U.S. operations after failing to reach a debt-restructuring agreement with lenders or find a buyer, according to Bloomberg.
Struggling under a $5 billion debt load, the company previously announced plans to close 184 stores, or about 20 percent of its 800 stores in the U.S. But the toy store may close the rest of its U.S. branches unless a rescue deal is reached, according to sources.
The toy chain’s division in the United States filed for bankruptcy last September. A new $3.1 billion loan was obtained to keep the stores open, but the holiday season did not generate enough sales to secure the division’s future, Bloomberg reported.
Toys “R” Us opened in 1948 as a baby furniture store and grew to become the nation’s largest toy chain.
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