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Toys 'R' Us considers closing all of its USA stores

Toys'R Us may close U.S. locations

Toys "R" Us Inc.is thinking about liquidating all of its USA stores as part of the company's bankruptcy restructing, media outlets are reporting.

The toy store chain entered bankruptcy in September, and sales did not get better over the holidays, Bloomberg reports.

Toys R Us may soon liquidate its USA operations, sources told CNBC.

Toys R Us failed to pull off the juggling act needed to balance a massive debt load while attempting to upgrade its out-of-date stores and improve its e-commerce offerings.

The situation has deteriorated for numerous retailer's overseas divisions, which weren't part of the bankruptcy, according to the Times.

Toys "R" Us is considering closing all of its stores nationwide, including four stores in West Virginia. Its European arm is seeking takeover bids. But the emergence of online competitors, like Amazon.com, weighed on results.

Citing a source who asked not to be named, Bloomberg reported that the search for a buyer for the company had not been successful. The company's huge interest payments also forced it to use resources that could have gone toward improving technology and operations. Moreover, the retailer was willing to take chances on new products and small companies. Hasbro and Mattel, the two largest companies in the sector, saw their stocks plunge by 3.5% and 7%, respectively.

Toys R Us faced the same problems that have pushed other retail chains into bankruptcy.

The company announced earlier this month they planned on closing stores in the United Kingdom, but it's not clear how many.