Toys R Us may be closing all stores

Toys R Us may be closing all stores

Toys R Us may be closing all stores

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.

Toys R Us dealt with almost $5 billion of debt at that time and announced plans to close over 100 stores in September.

The stores closing include three Toys R Us stores in Monaca, at Ross Park Mall, and in Washington, and one Babies R Us store in Monroeville.

Its European arm is seeking takeover bids and talks are being held to offload the growing Asian business, the company's most profitable arm.

Toys R Us has locations in Metairie, Slidell, Baton Rouge and Lafayette. Reuters said the chain, which filed for bankruptcy protection, has been unable to find a buyer or restructure its debt. Over time, however, the limited inventory made Toys "R" Us a one-stop shop that was not a destination for other products.

Toys R Us has about 800 stores in the U.S. In January, it announced it was closing 180 additional stores on top of a series of shutdowns that took place previous year.

Mattel's shares fell 6 percent to $14.96, while those of Hasbro dipped almost 3 percent to $90.75 in early trading. The retail chain makes up about 15 percent of us toy revenue and has a much more diverse toy selection than big-box stores like Target and Walmart. Babies "R" Us in the Holyoke Mall will close in April.

Toys R Us representatives have not commented on the possible liquidation. The Canadian portion of the company filed for bankruptcy when the U.S. arm did. Some of its struggles are tied to its massive debt load from its $6.6 billion leveraged buyout by private equity firms Bain Capital and KKR & Co. more than a decade ago. The company is now saddled with around $5 billion in debt, and it has found it hard to find relief.

The Star reported in September that 25 full-time employees work at the Winchester store.

In a marketing campaign unveiled last fall, the toy retailer rebranded itself as a place where kids can engage in free play and physically test toys.

With Toys R Us being the last superstore dedicated to toys and possibly leaving the USA market, toy makers could struggle to promote their products.

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