Toys R Us make plans to close 180 stores

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Toys "R" Us is reportedly closing all its USA stores next week after the bankrupt company was not able to find a buyer, according to Bloomberg News.

Its leaders have failed to find a buyer or reach a new debt financing deal with its lenders.

The toy chain's USA division entered bankruptcy in September a year ago, planning to emerge with a leaner business model and more manageable debt.

Other Toys R Us locations in Alabama are in Dothan, Foley, Hoover, Huntsville, Mobile, and Montgomery.

Bankruptcies have accelerated across the retail industry in the past two years, as chains struggle to adapt to broad consumer changes, such as the rise of e-commerce and shoppers' shrinking budget for apparel.

The retailer's attorneys echoed the message in bankruptcy in court, saying in essence that the world needed Toys R Us as the last remaining toy showroom.

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The remaining stores across the USA are making preparations for liquidation.

Toys R Us was saddled with debt after a 2005 buyout.

But there are now no bidders for Toys R Us, which accounted for 15 to 20 percent of USA toy sales in 2017. The latest news signals a chance the company will shutter all of its stores in the United States as well. Fox Business reports that at least 23 chains, among them legendary giants such as Sears/K Mart, J.C. Penney and Macy's, have closed stores in recent months with more shutterings sure to follow.

According to the Wall Street Journal, the company is abandoning efforts to restructure through the bankruptcy. "You know it's a different vibe when you go inside of the store", says a father as he walked out with toys for his kids.

Toys "R" Us declared bankruptcy in September and in January announced it would close 180 stores, including one in Omaha. With that kind of market share, Toys "R" Us should be in a comfortable position, not on the ropes.