Toys "R" Us fate could be decided tomorrow

Illustration: Sarah Grillo / Axios

The future of Toys "R" Us may be determined tomorrow in a Virginia bankruptcy court hearing that one source tells me will be "explosive."

At issue will be whether liquidation of the entire U.S. business will proceed as the only option (per preference of the "B-4 lender" group) or if a parallel process can continue whereby different debtors can keep working to find a strategic or financial partner that would save around 200, strong-performing U.S. stores (via a merger with the company's much-healthier Canada business).