After the company filed for Chapter 11 bankruptcy in September, it said 1,600 stores would remain open. Around three dozen retailers sought bankruptcy protection past year due in large part to a radical shift in consumer behavior, both in where they shop, and what they buy.
Even so, both Mattel and Hasbro took hits in the stock market on Friday.
Armed with a $3.1 billion loan, Toys "R" Us had hoped to bring its debt under control, but a disappointing showing during the holidays has worsened the outlook.
In January, the toy retailer announced that it would close 180 of its stores, following a poor holiday shopping season.
Toys "R" Us may be planning a sad end to its toy story: the liquidation of its bankrupt USA operations.
A spokesperson for Toys "R" Us declined to comment on the liquidation chatter.
If no buyer emerges, then stores will be sold off piecemeal or closed down. That has caused numerous stores that populated numerous malls to see a drastic drop in sales, such as Toys R Us. Meanwhile, there is talk of selling Toys "R" Us' Asian business, despite it being the company's most profitable area. The interest payments-$400 million a year-left the company weak and ripe for toppling. The company has about another 800 stores worldwide. In the early 1990s, sales were increasing at a 10 percent annual clip. Toys "R" Us may be running out of time, if it hasn't already.