Toys R Us to close or sell all 800 stores Wholesale prices rise 0.2% in February

Toy store chain Toys R Us is planning to sell or close all 800 of its U.S. stores, affecting as many as 33,000 jobs as the company winds down its operations after six decades, according to a source familiar with the matter.

The news comes six months after the retailer filed for bankruptcy. The company has struggled to pay down nearly $8 billion in debt — much of it dating back to a 2005 leveraged buyout — and has had trouble finding a buyer. There were reports earlier this week that Toys R Us had stopped paying its suppliers, which include the country’s largest toy-makers.

The company told employees that closures would occur over time, and not all at once, according to the source, who spoke on the condition of anonymity because they were not authorized to discuss internal deliberations.

Wayne, N.J.-based Toys R Us, once the country’s preeminent toy retailer, has been unable to keep up with big-box and online competitors. The recent holiday season dealt another blow to the embattled company, which struggled to find its footing even as the retail industry racked up its largest gains in years. In January, Toys R Us announced it would close 182 U.S. stores, including a Toys R Us in Fort Smith and a Babies R Us in Little Rock. There are three other Toys R Us stores in Arkansas — in Little Rock, North Little Rock and Fayetteville.

WASHINGTON — U.S. wholesale prices rose 0.2 percent in February, a sign that inflation is beginning to blip higher for producers even if consumers have yet to feel its pinch.

A pickup in wholesale services prices offset a drop in the cost of food and energy.

The Labor Department said Wednesday that the February increase in its producer price index was half January’s 0.4 percent gain. Producer prices, which show inflation before it reaches consumers, have risen 2.8 percent over the past year.

Energy prices fell 0.5 percent in February, and food prices fell 0.4 percent as fresh and dry vegetable prices plunged 27.1 percent, most since May 2007. The wholesale price of services rose 0.3 percent in February, matching the January increase. Prices for wholesale services rose 2.8 percent over the past year, the biggest annual gain in records that date back to 2010. Transportation and warehousing prices rose 0.9 percent, most since September. Excluding volatile food and energy prices, so-called core wholesale inflation rose 0.2 percent for the third straight month.

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