Toys R Us Preparing To Close All U.S. Stores: Report

PITTSBURGH, PA - Toys R Us, which in January announced plans to shutter nearly a quarter of its stores including four in southwestern Pennsylvania, now is preparing to close all of its U.S. locations.

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 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 those in Ross, Monroeville, Washington and Beaver.

The remaining Toys R Us stores in southwestern Pennsylvania are in Cranberry, West Mifflin, Robinson and Greensburg.

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.

Toys R Us filed for bankruptcy in September amid waning sales and mounting debt. The toy store chain has faced stiffening competition from Amazon, Walmart and Target.

Last year was disastrous for brick-and-mortar retailers that announced plans to close more than 7,000 stores - a 224 percent increase in announced store closures compared to 2016.

Photo: Getty Images.