Toys “R” Us May Officially Be Going Out of Business

According to sources familiar with the situation who spoke to CNBC, toy store chain Toys “R” Us is in the process of drafting the court motion for its liquidation plan.

It seems the company has missed a payment to some of its vendors this week and could file as soon as the end of Wednesday.

The company has been around more than half a century in business and may soon be shutting 800 of its stores in the U.S.

The effect of this could be significant as the retailer made up 15 to 20% of toy sales in the U.S. in 2017 according to analyst Stephanie Wissink of Jefferies.

Toy maker stocks have been feeling the concerns of traders as Mattel dropped 8% since CNBC reported last fall that Toys “R” Us was considering bankruptcy. Shares of Hasbro dropped nearly 5%.

Toys “R” Us declines to comment and the sources have asked to remain unidentified as the information is still confidential.