The company's Toys "R" Us and Babies "R" Us stores and e-commerce sites around the world are open for business, it said. In March 2017 Toys" R " Us Japan was successfully integrated into Toys" R " Us (Asia) which added a further 161 stores to the pan-Asia toy store chain. Target Corp. and Wal-Mart Stores Inc. are the other two customers. With $400 million in debt owed by the company, Toys "R" Us has since brought on advisers to help plan for long-term growth.
The company does not plan to close stores and says its locations across the globe will continue normal operations.
Here's what it means to be the largest specialty toy and baby goods retailer in the United States in 2017: 866 stores nationwide, Chapter 11 bankruptcy, and getting dominated online by Amazon.
The company announced the filing late Monday.
The toy seller also intends to seek protection in parallel proceedings for its Canadian subsidiary.
Chief executive David Brandon said in a court filing: "The timing of all of this could not have been worse". Restructuring that debt would give Toys "R" Us the financial flexibility to invest and strengthen its competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide. Toys R Us just didn't grow up with us.
Toys "R" Us had previously disclosed in a regulatory filing in June that it'd hired Lazard to restructure its $5.2 billion debt load. Workers have been instructed to inform them that stores will continue operating normally, reiterating what the company has said.More news: MDOH: 51 cases of West Nile virus confirmed this year
Rest easy, kids. Toys "R" Us Inc. isn't going anywhere, at least not if the makers of Barbie and Transformers have their way. The manufacturers offer this support because they want a place to sell toys at full price, year round.
Can I still use my Rewards "R" Us points?
Lego said it would keep working with Toys R Us during its bankruptcy "to ensure an optimal solution is reached" for continued Lego sales and "balancing our commitment to them while responsibly managing our business".
Toys "R" Us filed now because 40 percent of its vendors stopped shipping, unless they received cash on delivery. Toys " R " Us, Inc.is the world's leading dedicated toy and baby products retailer, offering a differentiated shopping experience through its family of brands.
Further bolstering its prospects, Toys "R" Us's underlying business, which generated $11.5 billion in sales past year, remains solid.
By the time Lazarus retired in 1994, the company had grown to more than 1,000 stores.
The Associated Press reported that GlobalData Retail estimates that in 2016 about 13.7 percent of toy sales were made online, up from 6.5 percent five years ago.