Business News: Toys 'R' Us may be liquidating its U.S. business
Various outlets including Bloomberg Markets and The Wall Street Journal are reporting that Toys 'R' Us may be closing all of its U.S. Toys 'R' Us and Babies 'R' Us stores. Earlier in January Toys 'R' Us already released a list of stores that it was planning to close, but it did not seem that the entire chain was headed towards closing.
Reasons for this potential decision include weak holiday sales in 2017 and the severe debt it has been under for over a decade since a buyout in 2005. Add to that the challenges of competing with online retailers such as Amazon and it has been a difficult time for the retailer.
Meanwhile, other divisions of the company are facing challenges as well. The U.K. division is under a court administrator and the European division is looking for someone to take it over. The Canadian division filed for bankruptcy at the same time as the U.S. division, so it is unknown what will happen to them at this time. It is not all doom and gloom however. The Asian division of the chain is actually profitable and could outlive the other areas.
More on this news as it develops.