Toys ‘R’ Us has filed for Chapter 11 bankruptcy protection in the U.S., and under the Companies’ Creditors Arrangement Act in Canada. As we pointed out in our recent coverage of the travails of Toys ‘R’ Us (see "Toys R Us Faces Debt Problem"), the company’s future was going to be decided by its trade creditors, who would decide whether or not to ship it goods for the holidays without cutting back on credit. Apparently, the company believed that it had to stabilize the situation to secure its supply and sought court protection.
All stores and the company website are functioning normally, the company said in a statement, with $3 billion in debtor-in-possession financing from a group led by JPMorgan and some of its existing creditors to provide cash for operations while in bankruptcy. “Toys ‘R’ Us is committed to working with its vendors to help ensure that inventory levels are maintained and products continue to be delivered in a timely fashion,” the company said.
The underlying problem was the amount of the company’s debt and the $400 million portion that was coming due next year. "Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide,” CEO Dave Brandon said of the filing.
Toys ‘R’ Us has 1600 stores in its core and Babies ‘R’ Us chains worldwide. This is the latest among a number of bankruptcies filed this year by retailers buffeted by online and mass merchant competition and declining store traffic; others include Payless, Gymboree, and Perfumania.

To Get Ready for Holidays
Posted by Milton Griepp on September 19, 2017 @ 3:20 am CT

MORE GAMES
New Board Game from Garphill Games
June 16, 2025
Renegade Game Studios will release The Anarchy , a new board game by Garphill Games.
Also, New Sharp-Edged 'D&D Adventure Dice Set: Tasha the Witch Queen'
June 16, 2025
Sirius Dice will release two new D&D Adventure Dice Sets into retail.
MORE NEWS
Entry Level Set Features X-Men Characters
June 16, 2025
WizKids unveiled a Marvel HeroClix: Starter Set 2026 , a new entry level set.
Showbiz Round-Up
June 16, 2025
Summer showbiz news is sizzling hot, and it's time for a round-up!