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Toys ‘R’ Us Is Prepping to Liquidate Its U.S. Operations

  • Situation is fluid, and rescue deal could still emerge
  • Retailer entered bankruptcy last year with $5 billion in debt
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Bloomberg’s Charles Allen discusses Toys ’R’ Us shutting down U.S. operations after entering bankruptcy last year.(Source: Bloomberg)
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Toys “R” Us Inc. is making preparations for a liquidation of its bankrupt U.S. operations after so far failing to find a buyer or reach a debt restructuring deal with lenders, according to people familiar with the matter.

While the situation is still fluid, a shutdown of the U.S. division has become increasingly likely in recent days, said the people, who asked not to be identified because the information is private. Hopes are fading that a buyer will emerge to keep some of the business operating, or that lenders will agree on terms of a debt restructuring, the people said.