Toys 'R' Us plans liquidation

NEW YORK

Toys 'R' Us's management has told its employees it will sell or close all of its U.S. stores. That's according to toy industry analyst Jim Silver who spoke to several employees on the call Wednesday.

Silver says Toys 'R' Us's CEO told employees the plan is to liquidate all of its U.S. stores and after that, it could do a deal with its Canadian operation to run some U.S. stores.

The company declined to comment.

The chain filed for Chapter 11 bankruptcy protection last fall. It pledged to stay open, but had weak sales during the holiday season. In January it announced plans to close about 180 stores.