Toys R Us Files for Chapter 11 Bankruptcy

Toys R Us Files for Chapter 11 Bankruptcy

With its filing under Chapter 11 of the USA bankruptcy laws late Monday, Toys R Us remains open but is protected from creditors' claims while it works out a court-supervised reorganization plan.

Globally, Toys "R" Us operates or licenses more than 1,950 stores in 38 countries and jurisdictions, employing 60,000 full- and part-time employees. This is forcing many retailers to close stores, lay off workers, and-in some cases-file Chapter 11 bankruptcies, sometimes a couple of times.

"We are confident that these are the right steps to ensure that the iconic Toys "R" Us and Babies "R" Us brands live on for many generations".

The company has relied on, late Monday, the chapter 11 of the u.s. law on bankruptcy in the bankruptcy court in Richmond, Virginia.

The company is saddled with debt from a $6.6 billion buyout in 2005 led by KKR & Co LP and Bain Capital LP, together with real estate investment trust Vornado Realty Trust.

"Ironically, the larger the traditional retailer, the more hard it seems to be for them to make this shift".

The bankruptcy news comes less than a month after the company decided not to take pre-orders on the SNES Mini, which previously sold out within minutes across retailers from Amazon to Target.

"The breathing room afforded by the CCAA and Chapter 11 proceedings will preserve value for stakeholders, while enabling Toys Canada to continue to operate without disruption as it moves into the holiday season", according to the affidavit of Melanie Teed-Murch, president of Toys "R" Us Canada since August 2016.

Taco Bell is ditching drive-thrus, adding booze
The current menu features "naked" and "dressed" egg tacos, skillet bowls and taco shells made with Doritos. On the menu will be sangria, beer and Twisted Freezes - slushies with rum, vodka or tequila.

Li Jiewei, a spokesman with the China Toy and Juvenile Products Association, thinks demand for toys remains robust, regardless of the problems at Toys "R" Us. Now other stores had them, but the Toys R Us I went to always had them before anyone else, like when Sega Saturn was released.

No, toys are selling very well worldwide-even at Toys "R" Us.

Toys "R" Us has spent about $100 million over the past few years to improve its e-commerce business.

So is this the end of Toys "R" Us?

The company opened a temporary store in New York City's Times Square this year to capture more holiday shoppers, nearly two years after it closed its flagship store barely a block away, driven out by high rents. In an interview, Chief Executive Officer Dave Brandon stressed the company's long history with manufacturers. Did you know that it has just filed for bankruptcy protection?

The toy seller also intends to seek protection in parallel proceedings for its Canadian subsidiary.

What the future holds for Toys "R" Us isn't clear. Its shares dropped 6.6 percent.

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