Toys R Us Files For Bankruptcy Protection In The US & Canada
EDIT 20/09/17: Toys R Us have reaffirmed that the restructuring in the US and Canada do not affect business in the UK, Europe and Asia as they are separate entities. UK stores will continue normal operations. Full information can be found on the company's restructuring website at www.toysrusinc.com/restructuring.
Toy retailer Toys R Us has filed for bankruptcy protection in both the US and Canada, making official a move that has been rumoured for some time, as the company struggles with reported debts of $5billion.
The company has 1,600 stores worldwide employing more than 60,000 staff, including a large operation in the UK, but it has said its operations outside the US and Canada do not come under the bankruptcy protection filing.
Toys R Us have said that it's stores in the US and Canada will continue to operate as usual, and has not announced any plans to close stores.
The chain has struggled to compete with the likes of Amazon and online shopping, with it's large store chain structure thought to be unsustainable in the long term.
Toys R US Chairman and chief executive, Dave Brandon, said: "Today marks the dawn of a new era at Toys R Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way.
"Together with our investors, our objective is to work with our debt holders and other creditors to restructure the $5bn 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."
TOPICS: News and Recalls