It looks like playtime is finally over at toy retailer Toys 'R' Us, after it filed for bankruptcy protection yesterday.
Hit by competition from the likes of Amazon, the once category-leading company has accrued a massive debt pile of around $4.9bn (£3.6bn). After warning of possible bankruptcy last week, the company yesterday announced it had filed Chapter 11 petitions in US and planned to seek similar protections for its Canadian arm.
“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 chief executive Dave Brandon.
He said that the company plans to work with creditors and investors to restructure the business and create greater financial flexibility
The move raises questions over the jobs of at least 64,000 people. Stores and operations in Europe, Australia and Asia are not covered by the filing.
The 1,600-strong portfolio of Toys 'R' Us and Babies 'R' Us will continue to operate as usual, with the group saying that most of these are profitable.
Brandon committed to continued operations through the busy holiday period, saying that "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".