Reuters has reported that the long-awaited IPO may be set to happen this summer.
Toys R Us filed for an IPO of up to $800 million last May, but has not announced the timing of its public debut.
"I don't know the reason why they pushed it off," said the source, who spoke on condition of anonymity. "There is speculation out there that they weren't coming off as strong a holiday season as they thought they would have."
Last week, another source said the retailer might delay an IPO contemplated for the first half of the year because of lacklustre holiday sales.
Toys R Us spokeswoman, Kathleen Waugh, said in an email that the company could not comment on the process.