Toys R Us said court-supervised proceedings will help restructure the outstanding debt and set the stage for long-term growth.
Toys "R" Us may be filing for bankruptcy ahead of the holiday season, and it's causing shares for two major USA toy companies to drop - Hasbro Inc. and Mattel Inc.
Neil Saunders, managing director of GlobalData Retail said that Toys "R" Us obtained an allegiance for over $ 3 billion in debtor-in-possession funding from lenders involving JPMorgan-led bank syndicate and undefined prevailing lenders said the Wayne, New Jersey-based company, which also employs the Babies "R" Us chain.
We've seen it in food retail and we are also seeing it in general retail, and today we've seen the latest high profile victim of this trend in consumer retail with the news that Toys "R" Us has filed for bankruptcy protection in the USA to become the latest casualty in the fight to stay relevant in a market place which puts the convenience of the consumer at the forefront of everything.
The toy seller also intends to seek protection in parallel proceedings for its Canadian subsidiary. But long before Amazon battered Toys 'R Us with a much deeper selection, Walmart was beating up the toy retailer with aggressive pricing on the most popular items during holiday seasons.
There were 1,600 stores in 38 countries.
Toys R Us said "the vast majority" of stores of both brands are profitable.
Hasbro Inc., the maker of Play-Doh and Transformers and My Little Pony toys, said it was declining to comment while it's "in the process of evaluating the terms of the Toys R Us bankruptcy filing and until we have a full understanding of the terms and their impact to Hasbro".
Hurricane Jose moving slowly as Category 1 storm
Nash County dodged a bullet this week when Hurricane Irma took a more westerly path, but don't start eating all of your emergency food supply just yet.
More than a dozen significant retail chains have filed for bankruptcy this year. The place that may bring back some quality memories of picking out all of your favorite toys had some serious debt to pay off after a buyout and competition from warehouse and online retailers.
The company's filing came in U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond.
The company has stressed that it will continue to carry the same amount of merchandise through the upcoming holiday season, and products will be delivered "in a timely fashion".
Yes. Your "R" Us Credit Card will continue to be accepted.
Analysts say Toys "R" Us hasn't been aggressive about building its online business, and has let those sales migrate to rivals.
According to Bloomberg, Toys "R" Us' decision to file for bankruptcy would let it concentrate on its debt of $400 million that must be paid in 2018.
Toys R Us traces its roots to 1948, when founder Charles Lazarus opened a baby furniture store in Washington. Sales of fidget spinners, a toy that has become ubiquitous in the past year, got twirling online first. Wicked Cool Toys, which makes Cabbage Patch Kids, is on board, too. "Everyone wants this to not be real or a temporary blip".