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(Reuters) - Bankrupt Toys 'R' Us Inc is preparing to sell or close all 885 stores in its U.S. chain, risking up to 33,000 jobs, after failing to reach a deal to restructure billions of dollars in debt, a person familiar with the matter said on Wednesday.
With shoppers flocking to online platforms like Amazon.com Inc
But creditors decided they can get more from liquidating assets of the toy seller, the largest in the United States and one of the best known in the world, rather than finding a way to keep the business alive, the person said, speaking on condition of anonymity to discuss the private negotiations.
The company is expected to make a filing with the bankruptcy court late on Wednesday, the person said.
The planned closure in coming months is a blow to generations of consumers and hundreds of toy makers that sold products at the chain, including Barbie maker Mattel Inc
In Britain, the remaining 75 Toys 'R' Us shops will close within six weeks, joint administrators for the retailer said earlier on Wednesday, after they were unable to find a buyer for all or part of the business, resulting in the loss of about 3,000 jobs.
Efforts to restructure collapsed this month after lenders decided, absent a clear reorganization plan, they could recover more by closing stores and raising money from merchandise sales, sources with knowledge of the matter said.
Toys 'R' Us is also likely to liquidate in France, Spain, Poland and Australia, Brandon said, according to The Wall Street Journal. It quoted Brandon as adding that the retailer also planned to sell operations in Canada, Central Europe and Asia.
Toys 'R' Us was already working with liquidators Tiger Capital Group LLC, Great American Group LLC, Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC on previously announced store closures, and the four are expected to continue with the additional closings, sources said.
The future of the retailer's big-box shops, many located in strip centres, was uncertain.
Shares in Mattel, the world's largest toymaker, and No. 2 U.S. toymaker Hasbro tumbled last week on liquidation reports. Both companies rely on Toys 'R' Us for roughly 10 percent of their revenues, according to their 2016 annual reports.
"A large number will go to the wall," Muller said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)