Toys R Us is planning to liquidate its U.S. operations

Toys R Us's management has told its employees that it will sell or close all of its U.S. stores.

That's according to a toy industry analyst who spoke to several employees who were on the call Wednesday.

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Jim Silver, a toy industry expert, says Toys R Us's CEO told employees the plan is to liquidate all of its U.S. stores and after that, it could do a deal with its Canadian operation to run some of its U.S. stores.

The company declined to comment.

Many say that the biggest competition for retailers today is the online, one-stop-shop Amazon.

For those who still want to see the products in person, Walmart is the leading brick and mortar store. Steve Keeley reports that 1998 was the first year that Walmart overtook Toys R Us in toys sales.

The chain filed for Chapter 11 bankruptcy protection last fall, saddled with debt that hurt its attempts to compete.

It pledged then to stay open but had weak sales during the critical holiday season. In January it announced plans to close about 180 stores.