It’s official: Toys ‘R’ Us will be selling or closing all of its 800 U.S. stores.
According to the Wall Street Journal, the retailer notified its 33,000 employees of the decision on Wednesday.
Toys ‘R’ Us has been struggling in the marketplace for months, having recently filed for bankruptcy protection in September. The chain had amassed more than $5 million in debt from a leveraged buyout. The closings will also affect its Babies ‘R’ Us stores.
Facing stiff competition from online retailers such as Amazon, discount retailers such as Walmart, and a declining toy market in favor of video games and other high tech toys.
The closing of Toys ‘R’ Us will deal a particularly hard blow to toy companies Hasbro and Mattel. According to regulatory filings by both companies, Toys ‘R’ Us accounted for nearly 10% of the companies’ overall sales.
Hasbro had reported a decline in sales during fourth quarter 2017, including for sales of its Star Wars product, as well as Disney and Frozen toys.
Toys ‘R’ Us is the last megastore dedicated to toys.