Toys R Us Begins Liquidation

Sadie Keljikian, Express Trade Capital

With consistently falling sales and pressure from several lenders, Toys R Us has begun liquidating its inventory ahead of planned store closures.

The retailer’s difficulties have only increased since filing for Chapter 11 last fall. Debtholders Hasbro and Mattel have seen their stocks fall significantly since then and started pressuring Toys R Us to liquidate its US operations to fulfill its debt obligations after a remarkably weak holiday season. Pressure only increased when news broke that the retailer was in serious danger of default two weeks ago.

While people close to the situation stress that plans are still fluid, it’s looking more and more like there’s little future for Toys R Us.

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