Toys 'R' Us Files for Bankruptcy

Toys 'R' Us Files for Bankruptcy

Toys 'R' Us Files for Bankruptcy

The company said its approximately 1,600 Toys "R" Us and Babies "R" Us stores around the world - "the vast majority of which are profitable" - are continuing to operate as usual, as will its online order operation.

Toys "R" Us filed for bankruptcy protection late Monday in a move that echoes a larger challenge faced by brick-and-mortar retailers.

Toys "R" Us said it "is expected to immediately improve the company's financial health and support its ongoing operations during the court-supervised process".

Toys "R" Us has officially filed for bankruptcy protection in the USA with experts describing it as one of the "largest ever" Chapter 11 filings by a speciality retailer.

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.

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Toys "R" Us have over the years struggled with the rise of Wal-Mart Stores and Target Corp and Amazon.com. Its stores in Canada will also seek bankruptcy protection through the country's court system, but the 225 stores outside of the USA and Canada are not part of the filings.

The once ubiquitous toy retailer has increasingly found it hard to assert itself within the growing online market place and changing consumer patterns.

The New Jersey-based chain has secured more than £2.2 billion in financing from a syndicate of lenders to help keep its stores open.

Brandon said the restructuring plan will give the company more financial flexibility to invest in growth. Jakks Pacific Inc, a smaller USA toy company that also relies on Toys "R" Us for its business, fell 7.2 percent to $2.83.

While several generations have memories of being "Toys R Us kids", combing the aisles in search of a coveted toy, changing buying habits have also affected the company. Two years later he started selling toys, according before opening the first Toys "R" Us branded shop in 1957.

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