Toys R Us may liquidate its bankrupt U.S. operations, report says

A Toys R Us store, shown Jan. 24, 2018, in Pittsburgh, is one of the approximately 182 stores Toys R Us planned to close nationwide as part of its Chapter 11 bankruptcy reorganization plan. (AP Photo/Gene J. Puskar)

(WISH) — A report Thursday said Toys R Us is preparing for a liquidation of its bankrupt U.S. operations, which could mean an end to the once-mighty toy retailer.

Bloomberg News reports the company has failed to find a buyer or reach a debt restructuring deal with lenders, according to people familiar with the matter. However, the situation remains fluid, Bloomberg reported.

Toys R Us was hobbled by $5 billion in debt when it filed for bankruptcy protection in September. Officials had hoped the U.S. operations would emerge with a new business model and less debt. A representative for Wayne, New Jersey-based Toys R Us declined to comment for Bloomberg.

Chairman and CEO Dave Brandon said in a letter in January that some stores would begin closing in February and that tough decisions were ahead. Since then, three Babies R Us locations in central Indiana were marked for closing, according to the company website: The Indianapolis stores at 8800 U.S. 31 South and 3928 E. 82nd St. and the Terre Haute store.

Toys R Us has three Indianapolis stores. In central Indiana, the retailer also has stores in Edinburgh, Lafayette, Muncie and Terre Haute.