Toys ‘R’ Us informed employees on Wednesday that it will close or sell all of its more than 700 U.S. stores amid mounting debt and years of declining sales, according to a report.
David Brandon, CEO of the Wayne, New Jersey-based toy retailer, broke the news to employees at the company’s headquarters. Toys ‘R’ Us’s impending liquidation could result in as many as 33,000 layoffs, according to the Wall Street Journal. The company will file paperwork related to the liquidation of its U.S. division on Wednesday night ahead of a bankruptcy court hearing on Thursday, the report added.
“I have always believed that this brand and this business should exist in the U.S.,” Brandon said on a conference call with staffers, according to the Wall Street Journal. Brandon added that vendors who did not support the brand during a weak holiday sales season would “live to regret” the retailer’s demise.
Toys ‘R’ Us representatives declined FOX Business’ request for comment on the situation.