Business & Tech
Toys R' Us Operations In US May Be Headed For Liquidation: Report
According to news reports, the situation is still fluid but a shutdown of U.S. operations is becoming increasingly likely.
Toys R' Us may soon be liquidating its operations in the U.S., according to reports in Bloomberg and CNBC.
According to the report in Bloomberg, the retailer has so far failed to find a buyer or reach a debt restructuring deal with lenders. People familiar with the matter who spoke to Bloomberg said the situation was still fluid but a shutdown of U.S. operations is becoming increasingly likely.
The retailer filed for bankruptcy in September and began liquidation sales at some 170 stores slated for closure in February.
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After filing for bankruptcy, Toys R' Us secured a $3.1 billion loan to keep stores open. CNBC reported that Toys R' Us was at risk of breaching the covenant on that loan after a disappointing holiday season. According to the CNBC report, some lenders have aggressively been pushing for liquidation.
Find out what's happening in Across Americafor free with the latest updates from Patch.
Read the full CNBC report here.
Photo by Autumn Johnson/Patch
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