Toys "R" Us Inc. CEO Dave Brandon confirmed to employees on Wednesday that the chain will be closing its U.S. operations, according to a person with knowledge of the matter, a move that leaves the nation without a major toy-store chain.
Brandon addressed workers at the company's headquarters in Wayne, New Jersey, laying out plans for an orderly shutdown of the business, the person said. The company will file a motion for the liquidation in bankruptcy court, according to the person, who asked not to be identified because the announcement isn't yet public.
Bloomberg reported on Thursday that the move was imminent, following unsuccessful attempts by the company to either find a buyer or reach a debt restructuring deal with lenders. Toys "R" Us's U.K. unit is also closing down after a bidder failed to emerge, but there's still hope for the Canadian operations. A group led by MGA Entertainment Inc. is contemplating a bid for that business.