NEW YORK, NY – Management at Toys R Us is reportedly telling its employees that it will sell or close all of its U.S. stores.

The Associated Press says that Jim Silver, a toy industry expert, says Toys R Us 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.

No comment has been made by the company which filed for Chapter 11 bankruptcy protection last fall.

The chain is saddled with debt and that along with a weak Christmas season has hurt its attempts to compete.