"We also intend to convert a number of locations into co-branded Toys "R" Us and Babies "R" Us stores". Walmart and Target carry toy lines, but they are also known for a million other things.
"My assumption is that there's about half a billion dollars worth of toys that have been produced for Toys "R" Us with no place to go", Kassoff explained.
All 740 Toys R Us stores in the USA will close.
It's not known how long the going-out-of-business sales will run.
The integration of Amazon's online and offline strategy has helped boost sales and draw more users to its Prime monthly subscription offering, as consumers seek perks such as better delivery options and in-store deals.
There was hope that around 200 stores could be saved as the company began to shop a plan to possible buyers. Roughly 33,000 people will lose their jobs when the stores close.
Another puzzling question about Toys "R" Us' future is whether the brand will live on after the stores are wiped out.
The core problem for Toys R Us is that the company has been drowning in debt since private investment firms KKR, Bain, and Vornado took control in 2005.
Bloomberg reports the online retail giant is looking at the possibility of acquiring some Toys "R" Us locations as it expands its brick-and-mortar footprint across the country. But its Canadian unit is up for sale, along with its operations around the world.
Toys R Us is still hoping that it will be able to keep up to 200 USA stores open as part of a package deal to sell its Canadian operations.