Toys ‘R’ Us Forced to File for Chapter 11 Bankruptcy
Toys 'R' Us might need to revise its slogan to bankruptcy is us, if the national toy retailer cannot find a solution to its debt problems.
KSFY TV is reporting, the New Jersey-based toy retailer has filed for Chapter 11 bankruptcy protection and contracted the services of a law firm to help the toy company restructure nearly 400 million dollars of their debt.
Bankruptcy might be the only way out if the big box toy retailer cannot find a way to work with their creditors on restructuring the mountain of debt currently surrounding the national toy chain.
According to USA Today, Toy 'R' Us plans on closing a few underperforming stores. The greater majority will remain open, along with their online operations worldwide as they work with suppliers to place a heavy emphasis on selling merchandise heading into the big holiday shopping season.
Toys "R' Us has nearly 65,000 employees worldwide, and 564 locations in the U.S. Two located here in South Dakota. One in Sioux Falls and another in Rapid City.
Source: KSFY TV/USA Today