Toys R Us preparing for liquidation, sources say

After scrambling to keep its bankruptcy reorganization plan alive, Toys R Us is preparing for liquidation, people who weren't authorized to speak publicly about the matter confirmed Thursday.

The toy retailing giant appears to be running out of time, and money -- pushing closer to having to close the doors of the entire chain. Its leaders have failed to find a buyer or reach a new debt financing deal with its lenders.

As word spread, shares of Mattel and Hasbro, two of the world's largest toymakers, fell in after-hours trading. 

The company in recent weeks has told workers at its going-out-of-business sales that it doesn't have enough money to pay severance. Its United Kingdom division has been placed under administration — the U.K. version of bankruptcy — after falling behind on debt payments. It also reportedly is in talks to sell its Asian European divisions.

Source: Usatoday