Published: Thu, March 15, 2018
Business | By Kate Woods

Toys R Us could file for liquidation today

Toys R Us could file for liquidation today

Toys R Us also recently stopped negotiating settlements with vendors on money owned before it filed for bankruptcy, some of the people said.

Stores in San Jose, Emeryville, Pittsburg, Pinole, Brentwood, Union City, Fairfield and San Rafael were already on the chopping block as part of that move.

The note continues by saying "as hard as it will be to loose your toy store my staff will lose their jobs".

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Toys "R" Us Inc. has missed payments to some suppliers in recent days as the USA division heads toward a likely liquidation, according to people with knowledge of the situation.

The rumors of liquidation are still unconfirmed but anonymous sources have given confirmation to several news organizations like USA Today, and The Wall Street Journal.

Toys "R" Us also announced in February that it would also close locations in Dedham, Millbury, Bellingham, Northborough and Framingham. As consumers do more and more of their shopping online, the big-box stores fall further and further behind. Things are even looking a little bleak for larger toy companies like Mattel and Hasbro, which both experienced drops in the stock market once the Toys "R" Us news started flying this month. Toys R Us accounted for about 10% of the companies' sales.

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According to Jefferies analyst Stephanie Wissink, Toys R Us accounted for 15 to 20 percent of USA toy sales past year.

But industry insiders say that without a dedicated toy retailer pushing the segment year-round and not just at Christmas, toy makers will have trouble introducing new products instead of the old standbys.

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