Gaming legend Toys 'R' Us files for bankruptcy

Gaming legend Toys 'R' Us files for bankruptcy

Gaming legend Toys 'R' Us files for bankruptcy

In a statement released late Monday night, the Toys "R" USA explained that they're filing for bankruptcy protection to "restructure its outstanding debt," in hopes that it will lead to more sustained long-term growth for the retail company. The firm's European operations are not part of the bankruptcy proceedings and Toys R Us says it does not expect any immediate impact on its United Kingdom stores.

Toys "R" Us intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents.

Toys "R" Us, based in Wayne, New Jersey, announced the filing late Monday.

The company could exit bankruptcy through a public offering of its shares or by a traditional reorganization in which creditors convert their debt to equity, he said.

Meanwhile, the filing of Toys "R" Us' bankruptcy raised people's attention on what would be the future trend of retail industry.

Analysts say Toys "R" Us hasn't been aggressive about building its online business, and has let those sales migrate to rivals. However, the Australian and European operations, as well as a joint venture partnership in Asia, are not included in the Chapter 11 filing. Toys "R" Us has 1,600 toy stores in 49 USA states and 38 countries. Stores are open and our web stores and other online platforms will remain up and running.

"We have financing commitments to ensure normal operations throughout the CCAA proceedings", said Teed-Murch.

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But the space pales in comparison to Toys "R" Us' former Times Square location, which offered shoppers a Ferris wheel and roaring T-rex.

The retailer introduced the "Hot Toy Finder", which tells customers exactly where in their local store to find the items featured on its "Holiday Hot Toy List".

It also plans to close an unspecified number of its 1,600 stores.

The 69-year-old toy store has filed for bankruptcy protection as it tries to reorganize. If you're totally anxious about the company's prospects, there are lots of places to buy toys and be confident you can return them after the winter holiday if your niece really wanted a stuffed tiger instead of a giraffe.

During the times before the Internet (some might call this the Dark Ages), kids had to find out what games and consoles to get from friends or from the kiosks that Toys R Us had.

Even though Mattel and Hasbro rely on Toys R Us for only 10% of their revenue, not all suppliers may have so diversified a portfolio of buyers.

Toys "R" Us filed now because 40 percent of its vendors stopped shipping, unless they received cash on delivery. US toy sales rose 6 per cent last year on top of a seven per cent increase in the prior year, says NPD Group Inc., a market research firm.

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