What makes the woes of Toys "R" Us even more newsworthy is that, as CNN Money pointed.it's the last megastore dedicated to toys. The closings present a larger problem for the toy industry as a whole as word of an impending liquidation sent stocks tumbling.
The bad news for fans of certain big chain toy stores fronted by giraffes keeps rolling in.
There are two Toys "R" Us store locations in Mays Landing and Vineland and a Toys "R" Us Outlet Center at the Tanger Outlets in Atlantic City. Mattel's shares fell 6% to $14.96, while Hasbro shares lowered around 3% to $90.75. However, the chain also announced plans to shutter more than 180 stores this year, or roughly 20% of its US operations. But, since news began breaking that the company could ultimately liquidate entirely, the retailer has been eerily quiet.
Hobbled by $5 billion in debt, the company that once dominated toy sales in the US filed for bankruptcy protection in September.
The company could be forced to close all remain locations if it files for Chapter 7 bankruptcy liquidation, which would wipe out the company's debt.
Toys "R" Us and Babies "R" Us stores are located in Charleston, Barboursville, Bridgeport and Vienna. Weak holiday results have exacerbated concerns about the chain's ability to operate in the future. The company is also considering other options, including a potential sale in bankruptcy if possible, the source told Reuters.