The toy retailer is reported considering liquidation of all United States assets, according to Bloomberg, which cited anonymous sources.
The onetime biggest toy store in the world has been struggling to stay afloat in a changing retail environment (hi, Amazon!).
The situation has also deteriorated for numerous retailer's overseas divisions, which weren't part of the bankruptcy. That has caused numerous stores that populated numerous malls to see a drastic drop in sales, such as Toys R Us. Its European arm is seeking takeover bids.
The remaining stores across the US are making preparations for liquidation. For years, the retailer was able to refinance its debt and delay a reckoning.
The company's struggles aren't limited to its US operations. "I don't think people will miss Toys R Us" if it goes out of business "because everything you can get at Toys R Us, you can get online".
Toys R Us Canada has about 82 stores as well as an e-commerce site - making it about one-tenth the size of its American counterpart.