ToysRUs Files For Bankruptcy

Posted: Sep 19 2017, 12:44am CDT | by , in News | Latest Business News

 

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ToysRUs Files for Bankruptcy
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Famous toy retailer ToysRUs files for Chapter 11 Bankruptcy protection.

ToysRUs announced to file for Chapter 11 Bankruptcy protection. The TRU stores and the online shop will remain open. The toy retailer will aim to restructure its outstanding debt and establish a sustainable capital structure during the Bankruptcy protection.

ToysRUs has a $5 billion debt on their books. The timing of ToysRUs' Bankruptcy announcement is not great. The Holiday toy shopping season has just started. On the day of the announcement, the new 2017 Hatchimals Surprise went up for pre-order. TRU continues to operate, but there is always something unsettling about shopping at a store that filed for Chapter 11.

“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,” said Dave Brandon, Chairman and Chief Executive Officer. “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. 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.”

Mr. Brandon continued, “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 Company has received a commitment for over $3.0 billion in debtor-in-possession (“DIP”) financing from various lenders, including a JPMorgan-led bank syndicate. Toys“R”Us, Inc. is headquartered in Wayne, NJ, and has nearly 65,000 employees worldwide.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com.

 

 

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