Fargo, all Toys 'R' Us stores to close nationwide

Toys R Us collapses

Locally, there is a Toys "R" Us store on Commercial Drive in New Hartford, located right next door to a Babies "R" Us store.

According to the Associated Press, Brandon's recording also revealed plans for shutting down numerous more than 750 global Toys R Us stores.

Bankrupt retailers are not legally required to honor gift cards, although Toys R Us and Babies R Us stores have continued to accept them since their September bankruptcy filing.

In other words, the company's biggest problem was their billions in debt that stopped them from updating stores and paying enough for employees, both to hire enough of them to make customers happy and to pay enough to keep good employees. Hasbro and Mattel will turn to Walmart and Target, which have less shelf space than Toys R Us, according to the AP.

But it could stand to benefit from Toys R Us' decline.

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"They're working on a very tight timetable", said Eric Snyder, chairman of the bankruptcy department at Wilk Auslander, a NY law firm.

According to recent documents, Toys "R" Us employs over 30,000 people in the U.S. Toys R Us was bought by the private equity firms Kohlberg Kravis Roberts and Bain Capital together with the Vornado Realty Trust for $6 billion in a leveraged buyout back in 2005. But the likely liquidation will have a bigger impact on smaller toy makers, who rely more on the chain for sales.

At its heyday, Toys R Us had a towering flagship store in New York's Times Square (now closed and home to Old Navy) and a ubiquitous icon, Geoffrey the Giraffe. But bankruptcy lawyers say some stores could shut down even sooner than that as the company winds down its operations. It was unclear if Babies R Us gift cards could be used for online shopping after that point.

"You have to look at this as an opportunity to reposition that store", she said. Legions of adults who came of age in the 1980s and 1990s can probably still whistle the jingle: "I'm a Toys "R" Us kid". Other chains, seeing that Toys R Us was vulnerable, got more aggressive. And Sharper Image, which also shut its stores, now sells gadgets online and opened a NY pop-up shop during the holidays past year. Despite the news, some toy companies say it'll just be a "blip" for the industry.

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