Is playtime over? Toys R Us explores bankruptcy

 
Helen Cahill
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Toys 'R' Us Times Square Holiday Shop
Amazon and discount retailers are squeezing the toy retailer (Source: http://www.toysrus.co.uk)

Is playtime over for Toys R Us?

The beloved toy retailer has appointed lawyers to advise on restructuring its debt, according to reports, and it is thought it could file for bankruptcy.

Toys R Us has been squeezed by the rise of Amazon and discount competitors such as Target and Walmart.

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Its like-for-like sales have been falling for three quarters in a row; in the first quarter of 2017, the chain made a net loss of $164m (£123m).

Lawyers at Kirkland & Ellis are now looking at the $400m in debt that Toys R Us is due to pay next year.

A spokesperson for Toys R Us said: "Toys R Us is evaluating a range of alternatives to address our 2018 debt maturities.

"We expect to provide an update about these activities, as well as the many initiatives underway to provide an outstanding customer experience on our global retail locations and website during the holiday season, during our second quarter earnings call on 26 September."

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