The toy retailer is reportedly making plans to liquidate USA operations, and shutter stores.
There are two Toys "R" Us locations in Toledo, one on Monroe St. and another on Reynolds Rd. The company is now saddled with around $5 billion in debt, and it has found it hard to find relief.
A new $3.1 billion loan was obtained to keep the stores open during the turnaround effort, but results worsened more than expected during the holidays, casting doubt on the chain's viability.More news: Now is time for gender equality — United Nations chief
Toys "R" Us Inc. doesn't sell the most toys in the USA - that distinction goes to Walmart Inc. - but it has remained a key proving ground for kids' gadgets, games and other playthings. According to Bloomberg, Toys "R" Us was hit with a slow Christmas season and they haven't been able to recover. The latest news signals a chance the company will shutter all of its stores in the United States as well.
Earlier this year, the company announced plans to close 182 stores around the country by April.
Toys R Us started in 1948 as a baby-furniture store in Washington, D.C. Nine years later, founder Charles P. Lazarus switched the store's focus to toys and shifted operations to Rockville, Md. With that kind of market share, Toys "R" Us should be in a comfortable position, not on the ropes. "Not just Toys R Us", he said, "but across the industry. This could be a sign that the company is finding it hard to reach creditor consensus and might be unable to avoid liquidation".
Citing a source who asked not to be named, Bloomberg reported that the search for a buyer for the company had not been successful.