Toys ‘R’ Us, a Chain retailer providing children’s toys, games, electronics & gear has filed for bankruptcy protection in the US and says it intends to follow suit in Canada.
The chain struggling with $5 billion in long-term debt has filed for Chapter 11 bankruptcy protection in the U.S.
The company based in Wayne, New Jersey, announced late Monday that it was voluntarily seeking relief through the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond — and that its Canadian subsidiary would be seeking similar protection through a Canadian court in Ontario as it seeks to reorganize.
Toys “R” Us said court-supervised proceedings will help restructure the outstanding debt and set the stage for long-term growth. Dave Brandon, company chairman and CEO expressed confidence in the looming reorganization, vowing that the iconic Toys “R” Us and Babies “R” Us brands known to shoppers for generations would continue on.