US retailer Toys ‘R’ Us has voluntarily filed for chapter eleven bankruptcy protection in the United States. It will seek parallel proceedings in Canada.
The company’s CEO Dave Brandon said in a statement that it expects the financial constraints that have held it back would be addressed in a lasting and effective way.
It intends to work with creditors to restructure the five billion dollars of bad debt on its balance sheet.
As the Christmas holiday retail period gets underway, Toys ‘R’ Us physical and web stores are open for business.
Brandon said team members around the world look forward to continuing to put huge smiles on children’s faces.
Toys ‘R’ Us has about 1,600 stores around the world and employs 65,000 people.
The company’s European subsidiary is not part of the bankruptcy proceedings.