More Discounts Offered As Toys R Us Increases Sales To 40% Off

WAYNE, NJ — Toys R Us has increased the discounts at its U.S. stores to up to 40 percent off as liquidation sales continue.

Items are now up to 20 to 40 percent off, with discounts now being offered on many previously non-discounted items.

The discounts are part of the Wayne-based company's strategy to "wind down" operations at its 735 U.S. stores and liquidate its inventory. Toys R Us filed for Chapter 11 bankruptcy in September. About 31,000 people are expected to lose their jobs when the stores close, including 1,100 at the Wayne headquarters May 14.

The bankruptcy filing came amid slumping sales and mounting debt, which grew to about $5 billion. The once-popular chain faced increasing competition from Amazon, Walmart and Target. The chain was set to close about 180 of its stores, or about 20 percent.

A federal bankruptcy judge ruled late last year that Toys R Us may pay 17 executives about $14 million in incentive bonuses if it hits a certain earnings amount. Attorneys representing the company argued that the bonuses would help executives focus on increasing sales during the past holiday season.

Isaac Larian, CEO of MGA Entertainment recently placed in a bid to try and save 274 U.S. stores, but Toys R Us rejected it. Larian said he would have kept the company's Wayne headquarters open as part of the bid CNNMoney reported recently. Between 7,000 to 10,000 jobs would have been saved.

In March, Larian and other investors pledged $200 million and tried to raise another $800 million in crowdfunding in a bid to save the stores.

Larian told CNNMoney that if Toys R Us does not exist, "the whole toy industry will be hurt for a long time."

Related: Toys R Us Files Chapter 11 Bankruptcy, Outlines Strategy
Related: Everything Must Go: NJ Toys R Us, Babies R Us Closing Sale On Now

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