All PA Toys R Us Stores Might Be Closing For Good: Reports

Toys R Us, which in January announced plans to shutter seven stores in Pennsylvania, now is preparing to possibly close all of its United States locations, according to multiple reports.

Bloomberg reported that although a final decision has yet to be made, the bankrupt company appears increasingly likely to liquidate its assets after failing to restructure its debt with lenders or find a buyer. The move would not immediately impact the company's operations in England, Europe or Asia.

The Wall Street Journal said people close to the matter revealed the possibility of U.S. closures developed after a weak holiday season. The agency said an official announcement could come as soon as Monday.

"The plan to shut down the stores and liquidate the U.S. operations is one of several scenarios in play, one of the people said, and while some lenders are pushing that route, others want to find other options for Toys 'R' Us to continue operations," according to this report in the WSJ.

News of the possible closures first broke Thursday, and while Toys R Us declined to comment on the issue, they did thank their customers via a message on Twitter.

"To our loyal customers: We've seen an amazing outpouring of love and support in recent days and we truly appreciate it," the company said on Twitter. "Our stores are open for business, ready to bring joy to children wherever we can, and to help new and expecting parents navigate raising a family."

The company began the year with more than 800 stores across the country under the Toys R Us and Babies R us monikers. In January, Toys R Us said it would close 180 locations, including these seven Pennsylvania stores.

The demise of Toys R Us would be a significant blow to the toy industry as the chain makes up about 15 percent of American toy revenue.

The New Jersey-based Toys R Us filed for bankruptcy in September 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 initially set to close about 180 of its stores, or about 20 percent.

— Patch editor Mike Carraggi contributed to this report; Photo Credit: Leon Neal / Getty Images News / Getty Images