It’s a sad day for kids all over the world, with iconic toy store chain Toys ‘R’ Us on the brink of closure.
The company, which has roughly 33,000 employees in the United States, has confirmed it will sell or close all its US stores in the coming months as it continues to battle financial issues.
Toys ‘R’ Us has struggled to service debt from a $US6.6 billion leveraged buyout by private equity firms KKR & Co and Bain Capital and real estate investor Vornado Realty Trust in 2005.
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The company plans to file liquidation papers today in advance of a bankruptcy court hearing overnight.
It was already in the process of closing one-fifth of its stores as part of efforts to emerge from one of the largest ever bankruptcies by a speciality retailer.
However, efforts collapsed earlier this month after lenders decided they could recover more in a liquidation, closing stores and raising money from merchandise sales.
It’s understood the retailer is likely to liquidate in Australia as well as France, Spain and Poland while operations will be sold off in Canada, Central Europe and Asia.