Retail chain Toys "R" Us Inc. is planning to close about 180 stores in an effort to end its bankruptcy.
The decision to close about 20 percent of the company's U.S. stores, which needs court approval, came after Toys "R" Us filed for bankruptcy in September, Bloomberg reported Tuesday night.
Part of the company's plan includes merging some Toys "R" Us and Babies "R" Us stores, as well as limiting its inventory.
There is concern that the store closures will harm toymakers, as those companies often have Toys "R" Us show customers their new products.
Toys "R" Us, the world's largest toy chain, filed for protection from its creditors after years of lackluster results and a $5 billion debt load.
The company did not have a stellar Christmas season, an issue that also affected other toymakers. There was hope that toys for the new Star Wars film would help sales, but the results were disappointing.
Chief Executive Officer Dave Brandon wrote a letter to employees, obtained by Bloomberg, in which he said the company made operational mistakes that must be addressed.