A major longtime retailer of toys, games and other fun items has filed for bankruptcy.
Toys R Us filed for Chapter 11 protection Monday in Richmond, Va., according to a release on its website, and is aiming to do the same in Canada.
The Wayne, N.J.-based retailer said only stores in the United States and Canada will be affected by the filings. The goal is to restructure debt and build long-term growth.
“Today marks the dawn of a new era at Toys R Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” Dave Brandon, Toys R Us chairman and chief executive officer, said in the statement. “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.”
Digital Access for only $0.99
For the most comprehensive local coverage, subscribe today.
Despite Monday’s action, the release says Toys R Us plans to continue its normal operations at its 1,600 stores and also online.
“As the holiday season ramps up, our physical and web stores are open for business, and our team members around the world look forward to continuing to put huge smiles on children’s faces,” Brandon said.
Bloomberg reported earlier Monday that Toys R Us, which opened in 1948, could be filing for bankruptcy as soon as Monday, and the retailer did just that.
“This filing is really a buildup of financial problems over the past 15 years,” Jim Silver, an industry analyst and editor of toy-review site TTPM.com, told Bloomberg. “Finally, the straw broke the camel’s back.”