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Toys ‘R’ Us Files for Bankruptcy Protection

Toys 'R' Us is filing for bankruptcy protection.

Toys ‘R’ Us is filing for bankruptcy protection.

The toy retailer has filed for Chapter 11 bankruptcy protection in the United States, it said in a statement on Monday. Meanwhile, it said its Canadian subsidiary will “seek protection in parallel proceedings” in the Ontario Superior Court of Justice.

The company said it will use the proceedings to restructure its $5 billion outstanding debt.

Despite the bankruptcy filing, Toys ‘R’ Us said its 1,600 stores worldwide continue to operate. The filing will not include around 255 Toys ‘R’ Us stores outside the U.S. and Canada.

The New Jersey-based retailer has nearly 65,000 employees globally.

Related: Toys ‘R’ Us bankruptcy fears hit Mattel and Hasbro

Toys ‘R’ Us, like the rest of the retail industry, has been hurt by the dominance of Amazon as people increasingly buy toys online. The company was acquired for $6.6 billion in 2005 by a group that included affiliates of private equity firms KKR and Bain Capital, as well as the real estate investment trust Vornado.

But it has continued to struggle since then. Toys ‘R’ Us reported a more than 4% drop in same-store sales in the first quarter and a net loss of $164 million, up from $126 million in the previous year. The company will report its second-quarter results on Sept. 26.

11 comments

    • Bob Smith

      Yeah, Long ago, no such thing as cell phones, internet and Xbox……. Playing with Atari in black and white from Ward’s for $20. Or mother would turn the TV off saying go play outside, ride bikes…. So, she would stay in her room and get drunk.

  • Lance

    Kids dont want toys that they have to use their imagination. They want videos and games so they dont have to get off the couch. What happened to parents that made their kids go oitside to play?

    • Bob Smith

      Generation have changed….Maybe parents are fat too….. If blizzard all day long. Can’t help it. Montage Mountain too pricey. Leave TV on running long time.

  • seen it all

    Just in time to not pay for the 2017 Xmas consignments . Pretty sneaky sis ! Maybe if lego’s weren’t $100 for plastic blocks (preconcieved kits)or toys so gross now ?

  • 🙄

    Online shopping is getting way out of hand. I don’t buy anything online. I want to see , touch and try on what I’m buying. Heck my daughter bought stuff online and was so angry when she got the stuff cuz it was nothing like it appeared to be online. Online shopping is just being lazy in my opinion. Look at 20- 30 years ago before online shopping. It was no big deal. You go get what you want/ need. Now a days that’s all people want to do is shop online. Not me, you put all your info on there ( credit card numbers and such) too easy for these fools to get a hold of. I’m good on that, no thanks!!

    • Bob Smith

      Online shopping always get blame with Internet technology ….And, I agree with you…… I’ve returned a lot with many issues….. It cost me postage….. Or company that sent wrong chandelier and wool rugs twice….. They pay for it! Now, I have to be more careful. No sofas until, I sit on it first.

  • Beaver pie

    So true Scotty and worst part is they don’t even know who the father is parents don’t care there just a paychek for them!
    The system is broke!

  • Beam me up

    Kid don’t even play with toys anymore let alone play outside and build tree houses and forts. It’s all about computers and video games. Our society is broken.

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