Toys “R” Us Inc. may have to close all of its U.S. stores soon if debt restructuring negotiations with creditors don't help it emerge from bankruptcy, according to the Wall Street Journal.
In January, the chain announced plans to close 184 stores, or about 20% of its roughly 800 U.S. stores. But now Toys R Us is evaluating bids to liquidate the remainder of its U.S. locations.
The chain filed for bankruptcy last September, hoping to reorganize its $5 billion debt.
Weak holiday sales failed to improve its chances, even after it revamped stores and operations.
These talks are continuing and no decision has yet been taken. The company is also considering other options, including a potential sale in bankruptcy if possible, according to the source.