Just recently, we wrote about global toy supply store Toys R Us’ financial predicaments, and as of today, the company has just made things official by filing for bankruptcy, with hundreds of millions in debt.
Toys R Us earns nearly half of its yearly revenue from the holiday season, and it’s unfortunate that the business could no longer be sustained, seeing how close we are to the end of 2017. Toys R Us ultimately failed to compete with online sellers.
With that said, the household name that has been around for generations insisted that its 1,600 locations will remain open, and that they will continue to work with suppliers for stock.
In a statement, the CEO said, “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.”
He added that the bankruptcy filing “will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.”
The filing of bankruptcy could help the company get relief by allowing it to cancel leases and drop poorly performing stores from their footprint. We have yet to find out what will happen to its 35 Malaysian stores.
