Toys ‘R’ Us reportedly preparing to close all stores

Toys “R” Us is reportedly preparing for liquidation after failing to find a buyer for its bankrupt U.S. operations.

Sources told Bloomberg the shutdown of the U.S. division has become “increasingly likely” in the past week. Company officials are losing hope lenders will agree on terms of a debt restructuring, but company officials declined to comment on the speculation. The Toys “R” Us also owns Babies “R” Us stores.

The toy company’s $583 million of first-lien bonds due in 2021 dropped as much as 4 cents on the dollar to 83.9, according to bond-pricing system known as Trace.

Toys “R” Us Inc. voluntarily filed for relief under Chapter 11 in September. Toys “R” Us was $5 billion in debt as of April 29. At the beginning of 2018, the chain had more than 800 stores before announcing in January that it would shutter 180 stores. At the time of bankruptcy, the company said it would close about one-fifth of its store locations. Closing sales are expected to conclude in April. Blowout sales could begin in a matter of weeks, retail analysts are predicting.

The Babies “R” Us at 2661 Miamisburg-Centerville Road in Dayton is one of four Toys “R” Us and Babies “R” Us stores in Ohio set to close. The other three Ohio locations to be shut are in Dublin, Mentor and Western Hills near Cincinnati. Toys “R” Us also has locations in Miamisburg and Beavercreek.

More than 12,000 stores are expected to close in 2018 — up from roughly 9,000 in 2017, according to Cushman & Wakefield, a marketing and data analysis firm. The retail industry, which supports one in four U.S. jobs, is undergoing major changes as consumers shift to online shopping. Dozens of retailers filed for bankruptcy in 2017, and thousands of stores closed across the U.S.