Toys "R" Us is on the verge of liquidation and may soon close all of its U.S. stores, Bloomberg reports.
The bankrupt company reportedly hasn't been able to reach a deal to sell or restructure its debt. Liquidation could happen as soon as next week, the Wall Street Journal says.
Last month, the struggling toy retailer announced it was planning to close a total of about 400 stores and lay off part of its corporate staff.
The already-planned closures, which need court approval, are expected to begin this month and be mostly completed by the end of April, Toys R Us CEO Dave Brandon said in a message to customers posted on the company's website.
"The actions we are taking are necessary to give us the best chance to emerge from our bankruptcy proceedings as a more viable and competitive company," he said.
Toys "R" us was founded in 1948 in Washington, D.C. It currently employs about 64,000 people.