Toys R Us may file for bankruptcy before the holiday shopping season, according to the Wall Street Journal.
Sources cited in the report say the toy chain's suppliers are the reason behind the possible bankruptcy filing. Some suppliers may not be shipping new items until Toys R Us pays them in cash right away.
Toys R Us was $5 billion in debt as of April, according to USA Today.
The toy company reported a net loss of $164 million in the first quarter this year.
Toys R Us became a private company in 2005 and is owned by equity firms Bain Capital and KKR and the real estate investment trust Vornado and is based in Wayne, New Jersey.
The three owners of Toys R Us declined to comment to USA Today or CNBC.
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