Faltering retailer Toys “R” Us has delayed liquidation sales at its U.S. stores until Friday at the earliest amid ongoing bankruptcy proceedings, a company official told FOX Business.
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Going-out-of-business sales were initially set to begin on Thursday, according to a timeline the retailer provided in a bankruptcy court hearing earlier this week. The specific reason for the delay is unclear.
The liquidation sales will offer massive discounts as Toys “R” Us looks to shed its remaining inventory by June. The New Jersey-based company outlined the process during the court hearing, the Bergen County Record reported.
The liquidation process is expected to take about 14 weeks to complete, though some stores reportedly could close sooner if inventory sells out. The toy retailer announced earlier this month that it would close or sell all of its more than 700 U.S. stores after failing to find a corporate buyer.
The planned wind-down was met with widespread criticism by Toys “R” Us vendors. Top partners Lego and Mattel are among some four-dozen vendors who raised objections, according to the Record.
Lego said any “wind-down must be implemented in a manner that is fair and equitable to all” of the company’s creditors, Reuters reported. Toys “R” Us reportedly missed payments to some vendors in recent days as its business sagged.
Toys “R” Us filed for bankruptcy last September, citing an increasingly competitive retail landscape and long-term debt of more than $5 billion. A weak holiday season hastened the retailer’s demise.
The venerable brand is purportedly attempting to salvage about 200 U.S. stores and its Canadian business as part of a slimmed-down version of the company. Representatives have yet to publicly comment on that plan publicly.
Closures of all Toys “R” Us stores could result in up to 33,000 layoffs.
This story has been updated.