First mentioned on Bloomberg yesterday and posted on USAToday and other websites last night, the US division of Toys R US is expected to liquidate and file Chapter 7 bankruptcy in the US possibly next week:

The UK division of TRU is in administration which is pretty much the same thing.

According to the article, TRU has been in trouble since a leveraged buyout in 2005 where they assumed almost $5 billion dollars of debt in a leveraged buyout.

I used to enjoy taking my sons to TRU back in the early 90s when they were 10, 7, and 4... my younger grandchildren have enjoyed going in the last few years, but I don't go as often as I used to because they haven't had new inventory, Cars-wise or otherwise.

I remember shopping at KB Toys and Children's Palace (a division of Child's World) back in the late 1980s through 2007 - they too filed bankruptcy and went out of business... I honestly expected Sears Holding (Sears and Kmart) to file bankruptcy and shut down before Toys R US.

If this indeed turns out to be true, we'll be left with Walmart and Target and Amazon as well as smaller online resellers... I don 't have a local Target and haven't bought much in the way of Cars at the local Walmart store.

Shares of Mattel and Hasbro stock dropped 6% and 3% yesterday respectively after the TRU announcement.

Some of my friends think TRU may try to hang on as an online-only company - we'll have to see.