Toys R Us has roughly $400 million in debt coming due in 2018 and is evaluating a number of options including a bankruptcy filing, CNBC reports.  Other options include restructuring its debt, with or without bankruptcy, or raising additional financing.  The company has hired Lazard to help address its debt load, and restructuring attorneys at Kirkland and Ellis among other steps to address the problem.

Same store sales at the chain fell 2.5% last holiday season. leading to layoffs of around 250 people at headquarters (see “Toys R Us Layoffs after Holiday Sales Decline”).

Entering the holiday season, Toys R Us relies on the continued shipping of product from toy and game companies, typically unsecured creditors that might be twitchy under current circumstances.  Ultimately, it’s those companies that may end up having the most to say about how, or whether, Toys R Us emerges from this latest crisis.    

The company recently announced that it’s returning to Times Square with a 35,000 square foot pop-up store for the holidays.