Toys 'R' Us files for bankruptcy

Toys 'R' Us files for bankruptcyā€¯

The company said it was "well stocked as we prepare for the holiday season and are excited about all of our upcoming in-store events".

Toys "R" Us, a major force in toy retailing in the 1980s and early 1990s, started losing shoppers to discounters like Walmart and Target and then to Amazon.

Another upside for Mattel and Hasbro: Toys "R" Us' bankruptcy filing, in which it revealed debt of $4.9 billion, also comes at a time when the two companies have already gradually lowered their dependence on the brick and mortar retailer.

The company said it would use the bankruptcy protection to restructure its $5 billion in debt and put into place new long-term strategies to cope with a challenging world for traditional retail models.

According to a vendor FAQ posted to the company's corporate site, the retailer has been "significantly impacted" by a $5 billion debt load on its balance sheet. Toys "R" Us' large network of shops are seen as a burden as customers switch to online shopping.

And children are increasingly moving more toward mobile devices as playthings.

How long has Toys "R" Us been around? It said it plans to open four more stores across the country later this year, on top of the seven stores it had already launched in 2017.

While the slow, plodding death of another great American retail chain will certainly cost jobs and bury some memories, the end of that unintentional funhouse of cultural exclusion masquerading as a kids' store will only help black parents who want to double down on products that lift kids' self-esteem and creativity. In 2016, Toys "R" Us sold off the FAO Schwartz segment of business.

"Mastermind continues to meet the increasing demand for high-quality specialty toys and children's books in underserved markets, and we look forward to introducing our brand to more and more Canadian families as the company continues to grow".

It also confirmed that its stores outside of North America, including the UK, Europe, Australia and a joint venture in Asia, were not affected by the so-called "Chapter 11" filing, which gives a company temporary protection from action by creditors to allow to reorganise.

The toy retailer has been around since 1948.

It confirmed to Sun Online that the scheme - along with its birthday list, baby registry and loyalty and gift cards - are all unaffected by the measures, so there's no need to panic. According to Jefferies, Toys "R" Us accounts for about 17% of its sales. It was late to develop and expand its e-commerce business and placed big bets on licensed toys for "Star Wars" and Lego movies that missed expectations.

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