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Toys 'R' Us expected to announce store closure update |

Toys 'R' Us expected to announce store closure update
Toys 'R' Us expected to announce store closure update Wed, 14 Mar 2018 12:16:48 EDT

Toys "R" Us has missed payments to some suppliers in recent days, according to a report by Bloomberg. The move likely indicates that the company is headed toward immediate liquidation. 

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A hearing in bankruptcy court is scheduled for Thursday after a delay. 
"To our loyal customers: We’ve seen an amazing outpouring of love and support in recent days and we truly appreciate it," the company wrote on Twitter. "Our stores are open for business, ready to bring joy to children wherever we can, and to help new and expecting parents navigate raising a family."

Several reports said the company is expected to address the liquidation of its stores on Tuesday. Sources told Bloomberg that the shutdown of the U.S. division has become "increasingly likely" within the past week. Company officials are losing hope that lenders will agree on terms of a debt restructuring, but company officials declined to comment on the speculation.

The toy company’s $583 million of first-lien bonds due in 2021 dropped as much as 4 cents on the dollar to 83.9, according to the bond-pricing system known as Trace.

Toys "R" Us, Inc. voluntarily filed for relief under Chapter 11 in September 2017. Toys "R" Us was $5 billion in debt as of April 29. At the time of bankruptcy, the company said it would close about one-fifth of its store locations. Closing sales are expected to conclude in April.
At the beginning of 2018, the chain had more than 800 stores before announcing in January that it would shutter 180 stores.