In the United States, the company told employees closures would likely occur over time, and not all at once, according to the source, who spoke on the condition of anonymity because they were not authorized to discuss internal deliberations.
Toys R Us, once the country’s preeminent toy retailer, has been unable to keep up with big-box and online competitors.
The recent holiday season dealt another blow to the embattled company, which struggled to find its footing even as the retail industry racked up its largest gains in years.
The company said it has more than 100,000 creditors, the largest of which are Bank of New York (owed $208 million), Mattel ($136 million) and Hasbro ($59 million).
Toys R Us, which was saddled with billions in debt, couldn’t invest enough to keep its stores or websites competitive.