Toys R Us on brink of complete closure

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(WAND) – A major U.S. toy store chain could soon close down completely.

A CNBC report says Toys R Us is thinking about liquidating all of its stores instead of restructuring. The company fell on hard times last year, filing for chapter 11 protection.

Toys R Us dealt with nearly $5 billion of debt at that time and announced plans to close over 100 stores in September. CNBC says poor holiday sales made the situation even worse for the company, as those results put it at risk of breaching a convenant on a $3.1 billion loan.

Sales numbers did not reach the levels Toys R Us told lenders they would reach.

The company has stores in Bloomington, Champaign and Springfield.

Numbers are also declining for other American toy companies, with Hasbro (3 percent) and Mattel (5 percent) seeing stocks drop.

CNBC says some lenders are asking the company to fully liquidate. It reports the situation remains a fluid one.

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