Published: Wed, March 14, 2018
Finance | By Loren Pratt

Toys R Us could close all of its stores

Toys R Us could close all of its stores

In January, Toys "R" Us announced that it would close 20 percent of its USA stores, or 180 locations (including multiple stores in Michigan), within months.

The company filed for Chapter 11 protection in September, when it seemed it might be able to reorganize its debt while it renovated stores and operations, but those hopes are fading, according to reports in the Wall Street Journal and Bloomberg.

The bleak situation lends evidence to the notion that Toys "R" Us is moving toward winding down its USA operations for good. Toys R Us in January had announced it was going to shut down 182 locations, including five in upstate NY.

But what does that mean for parents shopping for the next must-have toy? Shares of those companies fell on Friday after Bloomberg reported about the possible liquidation, then dipped again today over concerns about missed vendor payments.

"To our loyal customers: We've seen an incredible outpouring of love and support in recent days and we truly appreciate it", the company tweeted Friday.

The Latham store will close by the end of the month and has launched a closing sale, an employee at the store said.

The chain had already announced the shutdown of a Babies "R" Us location in the Holyoke Mall. Both Hasbro and Mattel saw a decline in sales a year ago, and now the toy companies are losing one of their biggest retailers.

"From product expertise to in-store events, independent retailers are connected to their customers and their community in ways unmatched by online or mass market", said Kimberly Mosley, President of the American Specialty Toy Retailing Association, in a news release about the survey.

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