Toys "R" Us stores were discontinued in the U.S. after the company filed for bankruptcy in 2017, leading to the closure of all its physical locations by June 2018 due to overwhelming debt and competition from Amazon, Walmart, and Target. While the iconic brand largely vanished from US streets, it's not entirely gone; new smaller-format stores and pop-ups have appeared inside Macy's and at some standalone locations, with plans for further expansion, showing a comeback effort under new ownership.

Why They Closed

Debt: A massive debt load from a 2005 leveraged buyout ($6.6 billion in debt vs. $6.6 billion in assets) required huge annual interest payments, crippling reinvestment.

Competition: Online retailers (Amazon) and big-box discounters (Walmart, Target) offered lower prices and one-stop shopping, eroding Toys "R" Us's market share.

Industry Shifts: A decline in birth rates and the rise of tablets and mobile devices also changed how children played and parents shopped.

The Shutdown: The company filed for bankruptcy in September 2017. In March 2018, the decision was made to close all 740 U.S. stores. The last stores permanently closed in June 2018, ending 70 years of operation.

The Comeback: Tru Kids, Inc. acquired the brand's intellectual property in 2019. New strategy involves smaller stores and shop-in-shops within Macy's. New standalone flagship stores opened at American Dream mall and Mall of America. Holiday pop-up stores have also appeared, signaling a revival attempt.