Toys "R" Us Inc. has missed payments to some suppliers in recent days as the USA division heads toward a likely liquidation, according to people with knowledge of the situation.
The payments stopped without explanation, said the people, who asked not to be identified because the matter is private.More news: Iraq lifts ban on intl flights to Kurdistan airports
The company, which faces a $5 billion debt load, also recently stopped negotiating settlements with vendors on money owned before it filed for bankruptcy, some of the people said. Now Toys "R" Us and other category killers like the now-defunct Sports Authority, Borders and Circuit City, are being upended by online retailers.
The kids may not wanna grow up, but they'll still have to do it - and without Toys "R" Us.More news: Bangor University staff to remain on strike after pension deal rejected
In the Bay Area, a complete shutdown would mean the closure of 19 Toys R Us and Babies R Us stores, not including nine local stores that the company in January announced would close as part of its effort to shutter 182 stores across the country and emerge from bankruptcy. Toys R Us in January had announced it was going to shut down 182 locations, including five in upstate NY. Bloomberg reported last week that the retailer was making preparations for a liquidation of its domestic business. The announcement is expected to happen this week, when the retailer is scheduled to appear in court for a bankruptcy hearing, the Wall Street Journal reported. That could spell the end of Toys R Us as we know it. Now the company is preparing to liquidate its bankrupt USA division, and though a rescue operation could still come through, it's looking more than likely that the retailer will have to close all of its doors very soon.More news: Eagles to sign Pro Bowl DT Haloti Ngata
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