Toys R Us Files for Chapter 11 Bankruptcy Protection But Will Keep Stores Open for 2017 Holidays
Posted on September 20, 2017
Toys R Us announced that it filed for Chapter 11 bankruptcy protection on Monday, September 18. The filing includes the U.S. and Canada operations. The toy giant says its approximately 1,600 toy stores continue to operate as usual and will remain open for the busy holiday season.
Toys R Us Chaiman and CEO Dave Brandon says, "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. We thank our vendors for their ongoing support through this important season and beyond. We also appreciate the strong support our investors have provided over time and the constructive role they are playing in this process that will allow us to create a brighter future for our company. And as importantly, we thank our team members in advance for their hard work and dedication to serving the millions of customers who will shop with us this holiday."
The retailer says it has received a commitment for over $3.0 billion in debtor-in-possession financing from various lenders. Toys R Us set up a restructuring information site here that says its physical and online stores are operating as normal as is its customer service. It includes a customer FAQ that says, "We expect to continue honoring return policies, warranties, gift cards and layaway programs."
A Wall Street Journal story notes that the company was once a "category killer." CBS News business analyst Jill Schlesinger says there will ultimately be closings of some under performing locations.