For many of us as children, the pre-Christmas trip to Toys ‘R’ Us was one of the highlights of the festive season.
However, the infamous toy store have filed for bankruptcy – what will happen to Geoffrey?
According to reports, experts have described this case of bankruptcy protection as one of the largest ever Chapter 11 filings by a speciality retailer.
The Independent report, data from Reuters, shows the company has been saddled with a huge amount of debt since buyout firms KKR and Bain Capital took it private for $6.6bn back in 2005.
However, operations outside of the US and Canada operate as separate entities and therefore, are not part of the proceedings and shops will remain open.
Chief Executive Dave Brandon said:
Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5bn of long-term debt on our balance sheet.
We expect that the financial constraints that have held us back will be addressed in a lasting and effective way.
Michael Freitag, a spokesman for Toys ‘R’ Us, told Bloomberg:
Like any retailer, decisions about any future store closings – and openings – will continue to be made based on what makes the best sense for the business.
Toys ‘R’ Us’ bankruptcy emphasises how pressure is building on ‘high-street’ retailers, from cut-price competitors such as Amazon.
It’s reported more than a dozen notable retail chains have filed for bankruptcy so far this year in the US.
