They filed for bankruptcy past year and was hoping that the holidays would help them bounce back.
Toys R Us has other five stores in Dauphin, Lancaster and York counties, including a joint store in West Manchester Township.
"Our results for the quarter were disappointing".
"If there is no Toys R Us, I don't think there is a toy business", MGA CEO Isaac Larian said in a statement.
"Ultimately it's really, really nearly impossible in that economic model to price-compete with Amazon", he says. "This process won't happen overnight but I am confident the steps we are taking will meaningfully improve the customer experience".
Geoffrey the giraffe becomes the company's mascot. Sales during the recent holiday period, which the company has yet to report, are believed to have been very bad. Toys R Us operates about 237 Babies R Us stores, according to IBISWorld.
But even struggling retailer JCPenney is making a bigger bet on toys lately, opening up specialty shops past year for toys made by Hasbro, Mattel, Lego and other leading brands.
Toys R Us has informed employees that the company plans to sell or close all of its USA stores, according to a person familiar with the plans who spoke anonymously because the official liquidation filing has not been publicly disclosed yet.
Toys "R" Us hopes to sell its much stronger Canadian business and run the company from that country.
For its operations in Asia and Central Europe, including Germany, Austria and Switzerland, the company will pursue a reorganization and sale process.
It's already shuttering its business in the United Kingdom and is reportedly likely to liquidate its businesses in Australia, France, Poland, Portugal and Spain. The Company's stores in all these global markets are now open and serving customers.
The company held out slim hope of selling its Canadian operations, possibly combined with up to 200 of the top-performing US stores, which the filing did not identify.
Toys "R" Us employs 3,200 people at 100 stores in Britain.
Dr Louise Grimmer, a retail expert at the University of Tasmania, said Toys "R" Us - like many other department stores - was slow to invest in online.
The previously announced administration of the United Kingdom business continues.
According to the Associated Press, Jim Silver, a New York-based long-time toy industry expert, said Toys R Us's CEO David Brandon told employees the company's plan is to liquidate all of its USA stores. Brandon also recently unveiled a plan to make the retailer's stores more tech-savvy with an augmented reality experience.
Toys R Us has been in business for 70 years.