Toys “R” Us Inc., the ultimate toyland for baby boomers and their kids, is going out of business after a failed rescue effort, unable to recover from intense competition and crushing debts.
The collapse, disclosed in a statement Thursday, could shut down hundreds of stores around the world and jeopardize tens of thousands of jobs. Toys “R” Us filed for bankruptcy in September with a plan to turn around the unprofitable retailer. But sales sputtered during the crucial holiday season, and Bloomberg reported that the company began missing payments to some suppliers in recent days, all but sealing its fate.
Toys “R” Us filed a motion seeking Bankruptcy Court approval to begin winding down its U.S. business, according to the statement. The company is also pursuing a reorganization and sale of its Canadian division as well as its international operations in Asia and Central Europe. Just sad!