Six months after filing for Chapter 11 bankruptcy protection, Toys ‘R’ Us is reportedly preparing to liquidate its U.S. stores altogether. The retailer had already made the decision to close 180 of its 800 remaining stores between February and April 2018, and it has failed to find a buyer or reach a debt restructuring deal with its lenders, according to Bloomberg.
The situation is still fluid, but a U.S. brick-and-mortar shutdown is becoming increasingly likely, the report said. Talks are being held to offload the retailer’s growing Asian business, the company’s most profitable arm, while the UK unit put itself in the hands of a court administrator. It’s not yet clear what will happen to the Canadian unit, which filed for bankruptcy protection at the same time as the U.S. division.
Toys ‘R’ Us has had a difficult task on its hands, seeking to figure a way out of $4.9 billion in debt, particularly $400 million due in 2018 and $1.7 billion more due in 2019.
A JPMorgan-led bank syndicate and a group of existing lenders…