The end may be near for Toys "R" Us.
The retail chain has failed to find a buyer or reach a deal to restructure its debt, Bloomberg reported.
Toys R Us has locations in Metairie, Slidell, Baton Rouge and Lafayette.
In filing for bankruptcy last September, Toys R Us cited a heavy long-term debt load of more than $5 billion.
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Toys "R" Us Inc. doesn't sell the most toys in the USA - that distinction goes to Walmart Inc. - but it has remained a key proving ground for kids' gadgets, games and other playthings.
Taking a trip to the toy store could become even more a novelty as Toys R U.S. prepares for what could be the end. The latest news signals a chance the company will shutter all of its stores in the United States as well. It filed for bankruptcy past year and in January, announced the closing of about 180 locations.
One company that could benefit from the model: Toys R Us.
The US company is also considering other options, including a potential sale in bankruptcy if possible, according to the source.
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But beyond the prospect of store refurbishment, any prospective buyer of Toys "R" Us Canada would have to work with skittish vendors and a higher cost base.
Mattel's shares fell 6 per cent to US$14.96, while those of Hasbro dipped almost 3 per cent to US$90.75 in early trading. Receiving debtor-in-possession financing and bankruptcy protection, Brandon said, would "ensure the iconic Toys R Us brand stays viable for years to come".
Toys "R" Us in Canada filed for bankruptcy at the same time as the USA division did, but the company's VP of Marketing told CBC Thursday that 'Our business in Canada is operating as usual'.
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