Toys "R" Us files bankruptcy just weeks before holiday shopping season

Randolph Lopez
September 20, 2017

In a so-called Chapter 11 filing, the 60-year-old retailer asked for bankruptcy protection late Monday, with analysts citing the rise of online shopping and declining high streets being partly to blame.

Toys "R" Us dates back to 1948 when Charles Lazarus opened Children's Bargain Town, a baby-furniture store.

It is "business as usual" for Cumbria's Toys" R " Us store despite the retail giant filing for bankruptcy in the United States.

Toys R Us has filed for bankruptcy protection in the U.S. and Canada after running up $5bn (£3.7bn) of debts and struggling to compete in the age of internet shopping.

The company's chairman and chief executive officer Dave Brandon said he was "confident" that the action would allow the store to "live on for many generations".

The new financing, subject to court approval, is expected to immediately improve the company's financial health and support its ongoing operations during the court-supervised process, Toys "R" Us said.

The company is headquartered in Wayne, N.J.

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This means Toys "R" Us will continue to trade for the time being and has a duty to inform the court if anything changes.

There is now one Toys R Us store on Staten Island - located in New Springville.

CBS News says Toys R Us must renegotiate $446 million in debt due before the end of its current fiscal year and is also on the hook for $2.2 billion in debt due the following year.

Many have speculated the move comes as part of a growing move by consumers to turn to online shopping or discount retailers.

Toys "R" Us declined to comment.

Toys "R" Us, a major force in toy retailing in the 1980s and early 1990s, started losing shoppers to discounters like Walmart and Target and then to Amazon. It also points out that its online stores for Toys R Us and Babies R us will remain open.

The retailer has filed for the bankruptcy despite leading up to the Christmas period where it records the most sales annually due to its significant debt problems.

Other reports by GlobalViralNews

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