60 Year-Old Retailer May Close All Stores, Including Cedar Rapids
It appears a $5 billion debt load will prove inescapable for Toys "R" Us Inc. The company, which opened its first stores in 1957, is reportedly preparing to liquidate everything in all of their remaining stores.
In January, the company announced they would be closing almost 200 stores, leaving about 600 open. Two Iowa locations were among the ones on that list. The Cedar Rapids store was unaffected by that announcement but wouldn't be spared this time.
The closings are not yet definite and there's at least one other scenario still at play. Some lenders are hoping to find a way to keep the stores open but toy manufacturers have large concerns if they don't. They are worried because no other retailers carry the wide range of products that Toys "R" Us does and believe they would be negatively impacted if the stores close. They might not have to wait long to find out. An announcement could come as soon as Monday.