Toys R Us has put forward plans to close at least 26 UK stores, putting up to 800 jobs at risk.
The company said there would be no changes over the crucial festive season, though.
The toy firm is looking to "transform" the business amid pressure from rivals and is aiming to cut store numbers in a bid to bolster profitability.
The chain is instigating a Company Voluntary Arrangement (CVA) with creditors and tores will begin closing from the spring.
Larger out of town stores are expected to be hit hardest, with one source stating that the warehouse-style stores that opened in the 1980s and 1990s are too big to operate profitably.
Stores in Birmingham include St Andrew's Retail Park, Oldbury, Solihull, and Merry Hill.
Further afield, the chain operates stores in Tamworth, Coventry and Stafford.
Toys R Us says its aim will be to redeploy staff to its smaller, "more interactive" stores.
Redundancies, however, were likely.
The company employs around 3,350 people with 100 stores across the UK.
The company's UK managing director, Steve Knights, said: "All of our stores across the UK remain open for business as normal through Christmas and well into the New Year.
"Customers can also continue to shop online and there will be no changes to our returns policies or gift cards across this period.
"Like many UK retailers in today's market environment, we need to transform our business so that we have a platform that can better meet customers' evolving needs.
"The decision to propose this CVA was a difficult one, but we (are) determined it is the best path forward to make essential changes to the business."
Mr Knights added: "We recognise this process will affect many of our team members and their families, so we are committed to keeping all of our staff informed throughout this process."