Toys R Us files for bankruptcy
Toys R Us, facing imminent deadlines to pay off hundreds of millions in debt, said Monday that it has filed for Chapter 11 bankruptcy protection.
The move comes on the cusp of the all-important holiday season, a period in which many retailers earn nearly half of their annual revenue, and a time of year that is particularly lucrative for the giant toy seller. The filing was long in the making.
The filing also strikes at the heart of one of the nation’s most iconic retailers, a household name for more than a generation. Toys R Us pioneered big-box toy retailing generations ago, a national chain that displaced many smaller, neighborhood toy stores.
The company emphasized that its roughly 1,600 locations will remain open and it will continue to work with suppliers to make sure its shelves remain well-stocked with games, gadgets, and other toys.
The company made the filing in the U.S. Bankruptcy Court for the Eastern District in Richmond, Va. Its Canadian subsidiary plans to make a similar petition in Ontario Superior Court.
Source: USA TODAY – Toys R Us files for bankruptcy
