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Toys R US to Close 800 US Stores, Files for Bankruptcy

Toys R US to Close 800 US Stores, Files for Bankruptcy

Toys R US, Charles Lazarus

It’s the end of an era for Toys R US kids.

The toy company announced on Wednesday that they’re going out of business and closing 800 stores in the U.S., including its Babies R US brand.

The retailer that faced mounting pressure from Walmart and Amazon in the last few years notified employees about its plans to liquidate, according to NPR.

The move comes after a months-long process to find financing to save the business with the hope that some stores would remain open.

On Thursday, the company began the process by filing a motion in U.S. Bankruptcy Court, according to USA Today.

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The report states that Toys R US’s lenders “have determined that the best way to maximize their recoveries is to liquidate the existing inventory in all…735 remaining U.S. stores and begin an orderly wind-down of the U.S. operations.”

The company employs roughly 33,000 people and only has enough cash on hand to pay its employees “no fewer than 60 days,” per USA Today.

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