Toys 'R' Us could close all of its stores next week

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According to media reports, the company is preparing for a liquidation of its bankrupt USA operations after failing to find a buyer or reach a debt restructuring deal with lenders.

The retailer has yet to find a buyer or secure a debt restructuring deal with its lenders, according to Bloomberg News.

"No toy company will be spared entirely in the seemingly likely liquidation of Toys "R" Us," she said. The company is now saddled with around $5 billion in debt, and it has found it hard to find relief.

Fifteen percent of USA toy revenue.

With Toys R Us being the last superstore dedicated to toys and possibly leaving the USA market, toy makers could struggle to promote their products.

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The Associated Press reports toy-maker stocks fell Friday after Reuters reported that Toys "R" Us is getting ready to liquidate its USA operations. In January it closed 180 locations.

The company has been shedding sales in large part due to growing competition from online retailers like Amazon. In many cases, a product is tested at Toys "R" Us for a season, and then added to one of the mass-market chains. "I don't think people will miss Toys R Us" if it goes out of business "because everything you can get at Toys R Us, you can get online".

If Toys "R" Us is unable to fashion a last-minute miracle, the end of its 70-year run would be the latest blow to the reeling retail industry. Hasbro fell more than 3 percent, while Mattel stock declined almost 5 percent. Some of the companies that have gone under have been small, but there are also big retailers on the list, like Payless Shoe Source, Gymboree Corp. and True Religion jeans.

But beyond the prospect of store refurbishment, any prospective buyer of Toys "R" Us Canada would have to work with skittish vendors and a higher cost base.

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