Toys R Us was founded in 1948. Photo via wikimedia.org
A major toy retailer is getting boxed up.
Wayne, N.J.-based Toys R Us, which employs 30,000 workers, said in a U.S Bankruptcy Court filing today that “it must liquidate," according to an article today by the USA Today.
Toys R Us will likely close or sell all of its U.S. stores after failing to find a buyer or reach a deal to restructure its debt, according to an article today by Reuters.
The toy company had planned to restructure its debt by closing 180 U.S. stores, including a Toys R Us in Muskegon and Babies R Us in Grand Rapids, the Business Journal reported in January.
This past winter’s holiday results showed lenders the company “consumes cash” for most of the year and only earns money during the holidays, the USA Today reports. The underperforming holiday period made lenders nervous.
The company has struggled to boost sales and service debt following a leveraged buyout by private equity firms in 2005, Reuters reports.
Toys R Us CEO Dave Brandon said the company would maintain the Babies R Us registry and the web stores in the hope that someone may want to buy the assets, the USA Today says.
The liquidation would include inventory of 735 U.S. stores, which debtors expect will close by the end of this year, Reuters says. The company has not ruled out a last-minute buyer for all its stores.
Stores in West Michigan
Toys R Us, 3130 Alpine Ave., Grand Rapids
Toys R Us, 3443 28th St. SE, Grand Rapids
Toys R Us, 350 84th St. SW, Byron Center
Babies R Us, 4923 28th St. SE, Grand Rapids
Toys R Us, 5363 Harvey St., Muskegon
Babies R Us, 5890 S. Westnedge Ave., Portage
Toys R Us, 6207 S. Westnedge Ave., Portage