Toys 'R' Us could close all of its US stores next week

Toys 'R' Us could close all of its US stores next week
Posted at 2:48 PM, Mar 09, 2018
and last updated 2018-03-09 11:17:29-05

(RNN) – Toys ‘R’ Us is reportedly closing all its U.S. stores next week after the bankrupt company was not able to find a buyer, according to Bloomberg News.

The U.S. branch of the company hoped to find a buyer or work out a debt restructuring deal, and unnamed sources are leaking to business outlets that the company will liquidate its assets. Toys ‘R’ Us accounts for 15 percent of the U.S. toy revenue, Bloomberg reports.

Earlier this year, the company announced it would close about 182 stores as part of its bankruptcy reorganization, which included Babies R Us stores.

No one for the for company would comment on the record to various media outlets calling about the possible closure, but their Twitter account thanked customers for their support.

The rumors affected toy companies in the stock market on Friday; shares for Hasbro fell by 3.5 percent and 7 percent for Mattel, CNN Money reports. The toy chain accounts of 10 percent of sales for both toy companies.

Earlier this week, Lego announced its first sales decrease in 13 years.

According to CNN, the toy industry is faltering a bit recently because of the rise of video games and other high-tech toys that kids are increasingly demanding, instead of action figures, dolls and board games.

The same CNN report says that Amazon is pushing toy prices lower, hurting not only Toys 'R' Us, but Target and Walmart toy sales as well.

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