(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.
To our loyal customers: We’ve seen an amazing outpouring of love and support in recent days and we truly appreciate it. Our stores are open for business, ready to bring joy to children wherever we can, and to help new and expecting parents navigate raising a family.— ToysRUs (@ToysRUs) March 9, 2018
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.
Copyright 2018 Raycom News Network. All rights reserved.
Hawaii News Now
420 Waiakamilo Road, Suite 205
Honolulu, HI 96817
Main (808) 847-3246
News (808) 847-1112