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CNBC reports that Toys R Us is likely to go to court, possibly as early as today, to liquidate the company. “It will then begin to wind down the storied toy retailer, after more than half a century in business,” the story says, with the likely closure of all of its 800 US stores.

Toys R Us filed for bankruptcy protection last September “with $4.9 billion in debt, a vestige from its $6.6 billion acquisition by Kohlberg Kravis Roberts, Bain Capital Partners and real estate investment trust Vornado Realty Trust in 2005.” In addition, CNBC points out, Toys R Us was unable to figure out a successful strategy for competing with online retailers, and the recent holiday shopping season was a major disappointment.

While Toys R Us had been point up a brave front and telling vendors and employees that it was staying in business, this week it missed some vendor payments and stopped responding to calls.
KC's View:
Senior execs probably stopped returning calls because they had to figure out how to spend the millions of dollars in incentive bonuses that they persuaded the bankruptcy court to give them so they’d stay at the company.