2018 has not been a great year for Toys “R” Us. Back in January, we reported that the company closed 180 U.S. stores after filing for bankruptcy. Now it appears that things have taken a worse for the retailer, which is preparing to liquidate its operations, which could mean closing all its U.S. stores.
The news comes as Toys “R” Us Inc. failed to find a buyer or a way to restructure its debt with lenders. Previously, the company got a $3.1 billion loan to keep their doors open while they tried to turn things around. That's a lot of Barbies, y’all. However, around the holidays the situation got all the more dire.
In a statement, Gregory Plotko, a partner in the bankruptcy practice at Richards Kibbe & Orbe LLP, said, “While a Chapter 11 bankruptcy provides a company with breathing space, it is incumbent on the debtors’ management to show how it intends to reorganize as a going concern.” Plotko also said that his “sense is that the major creditor group has not yet heard a compelling enough story, nor has a ‘white knight’ appeared.”
Toys “R” Us are not alone in their struggles. The rise of e-commerce has dealt a disastrous blow to the retail industry, including the bigger chain stores. As Bloomberg notes, Claire’s Stores Inc. (a fashion accessories chain known all too well to kids born in the 80s) is in dept for $2 billion and is also set to file for bankruptcy.