Toys ‘R’ Us Inc, the iconic toy retailer, will shutter or sell its stores in the United States after failing to find a buyer or reach a deal to restructure billions in debt, putting at risk about 30,000 jobs.
The closure is a blow to generations of consumers and hundreds of toy makers that sold their products at the chain’s U.S. stores, including Barbie maker Mattel Inc, board game company Hasbro Inc and other vendors like Lego.
“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,” Chief Executive Officer Dave Brandon said.
With shoppers flocking to Amazon.com Inc and children choosing electronic gadgets over toys, Toys ‘R’ Us has struggled to boost sales and service debt following a $6.6 billion leveraged buyout by private equity firms in 2005.
Toys ‘R’ Us said on Thursday it is seeking approval to liquidate inventory in its 735 U.S. stores, which debtors anticipate will close by the end of this year.
It is in talks to sell 200 of those stores as part of a deal to sell its 80-odd stores in Canada.
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