Toys R Us Delays Liquidation Sales At All US Stores

WAYNE, NJ — Toys 'R' Us has delayed a massive liquidation sale at all of its US stores that was scheduled for Thursday. The sale was delayed due to "unforeseen circumstances," according to the company.

The sale is now likely to start Friday, according to Toys R Us spokesperson Amanda Kahl (see list of Oregon stores and locations below). Discounts on toys, baby goods and many other items will start at 30 percent off, Kahl said. Coupons will not be accepted and all sales are final.

The liquidation sales will take place after a number of closing sales already began following the company's filing for bankruptcy protection last year.

The sales are slated to be completed by the end of June. The schedule was discussed Tuesday at a hearing in U.S. Bankruptcy Court, according to USA Today.

Some stores may close prior to the 14-week timeline the company has put in place, according to Fortune. Toys R Us was in court this week seeking approval of the liquidation timeline from U.S. Bankruptcy Court Judge Keith Phillips. Several toy manufacturers at the hearing called the timeline unfair, according to the reports.

Toys R Us began holding going-out-of-business sales at 144 of its U.S. stores in February but announced Thursday it would be "winding down" operations and sell or close 735 U.S. stores. That "winding down" includes liquidating its inventory and holding going-out-of-business sales.

Items bought at a store before its liquidation sale begins may be returned to any open store. Once a store has a liquidation sale, returns will not be accepted. Gift cards are redeemable through April 12.

In a news release, the 70-year-old company previously said it is engaged in transaction discussions that could ultimately combine up to 200 of the top performing U.S. stores with its Canadian operations. No updates regarding that possible strategy have been announced on the company's website.

"I am very disappointed with the result, but we no longer have the financial support to continue the company's U.S. operations," said Dave Brandon, chairman and chief executive of the company. "This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years."

The company will sell or reorganize certain international business, while other international businesses consider their options, Brandon said.

In New Jersey, 1,159 people at the company's Wayne headquarters will lose their jobs May 14, the same day the company's distribution center in Flanders is slated to close; 473 people will lose their jobs when it does. Employees working at the company's brick and mortar stores will not receive severance packages, but they will be paid for any hours they work with the company until it closes.

Slumping sales and mounting debt, which grew to about $5 billion, reportedly plagued Toys R Us when it filed for bankruptcy, although Toys R Us announced at the time that the "vast majority" of its 1,600 worldwide locations were profitable.

The once-dominant retailer struggled to compete with online retail giant Amazon and stores like Walmart, The New York Times reported.

Toys R Us had a $400 million debt payment due this year and was "burning through cash," the Times reported, and hired law firm Kirkland & Ellis to devise a strategy moving forward.

A federal bankruptcy judge ruled late last year that Toys R Us may pay 17 executives about $14 million in incentive bonuses if it hits a certain earnings amount. Attorneys representing the company argued that the bonuses would help executives focus on increasing sales during the past holiday season.

Toys R Us knew that its post-bankruptcy rebuilding plan was in trouble as early as Black Friday last year, but hoped that it could keep it going until lenders stopped supporting the company earlier this month, according to the USA Today report.

Here is the list of Toys R Us stores in Oregon:

• 12305 N. Starlight Ave. in Portland — 503-286-7558
• 12535 S.E. 82nd Ave. in Clackamas — 503-659-5163
• 10065 S.W. Cascade Blvd. in Tigard — 503-620-9779
• 1200 Lancaster Dr. N.E. in Salem — 503-363-4328
• 1133 Valley River Dr. in Eugene — 541-485-8742
• 1300 Biddle Rd. in Medford — 541-772-6010

Related: Toys R Us Closing Is The End Of An Era
Related: Toys R Us Will Sell Or Close NJ Stores, Company Confirms
Related: Toys R Us Files Chapter 11 Bankruptcy, Outlines Strategy

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Story written by Daniel Hubbard, Patch Staff, with additional reporting from Oregon Patch Editor Travis Loose.

Photo via Getty Images