Toys 'R' Us Files For Bankruptcy
Toys“R”Us, Inc. announced late Monday that it filed for voluntary Chapter 11 Bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, VA.
During the bankruptcy proceedings, the company’s approximately 1,600 Toys“R”Us and Babies“R”Us stores around the world are continuing to operate as usual.
Customers can also continue to shop for the toy and baby products on the www.toysrus.com and www.babiesrus.com web stores.
Toys“R”Us is among several brick-and-mortar stores and malls that are struggling to stay in the black as online competition continues to claim a larger share of the retail industry within the last decade.
The retail toy giant stated that it intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth.
“Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide,” said Dave Brandon, Chairman and Chief Executive Officer. “We are confident that these are the right steps to ensure that the iconic Toys“R”Us and Babies“R”Us brands live on for many generations.”