Toys R Us, the iconic retailer of the US The US is in the process of drafting the judicial motion for its liquidation plan, a source familiar with the situation told CNBC on Tuesday.
No Toys R Us to sell their products , toy manufacturers need to trust Amazon and compete for limited shelf space in large box stores, which is why Jefferies & # 39; Wissink estimates that up to 15 percent of all toy sales could be lost forever.
The actions of Toymaker Mattel has dropped 8 percent since CNBC reported the retailer weighed a bankruptcy filing in September, while rival Hasbro stock shed approximately 4.6 percent.
Toys R Us went bankrupt in September with $ 4.9 billion in debt, a vestige of its $ 6.6 billion acquisition by Kohlberg Kravis Roberts, Bain Capital Partners and real estate investment trust Vornado Realty Trust in 2005.  Toys R Us had sold those financial buyers in the middle of the pressure, since Walmart, Target and others lowered their prices. The debt of that purchase, however, only added to its challenges. The retail trade soon changed drastically, led by Amazon's rapid growth, and Toys R Us was hampered by payments, unable to make the investments it needed to keep up.
I was hoping under bankruptcy protection to finally make the changes I needed to compete, like a stronger Internet business and more experimental stores, but, finally, it was too late. The crucial holiday season was bad for the retailer, and he lost all his financial estimates.
In the weeks that followed the holidays, the pressure continued to increase. His low cash balance left him at risk of breaking the terms of his bankruptcy loan, sources told CNBC. Another subset of its lenders, meanwhile, has been pushing hard for liquidation, the sources told CNBC.
Last week, it became increasingly clear that liquidation would be the most likely route. Even so, as recently as last week, he was sending products to his suppliers and telling employees that it was business as usual, the sources said.
This week, however, Toy R Us missed a payment to some of its suppliers, and was not sensitive to calls, sources told CNBC. Bloomberg reported the lost payment for the first time.
The people requested anonymity because the information is confidential. Toys R Us declined to comment.