Toys“R”Us Inc. filed for bankruptcy yesterday in the United States and Canada.
The Wayne, N.L.-based retailer’s 1,600 Toys“R”Us and Babies“R”Us stores, including one of each in Santa Clarita, will remain open while the chain restructures its debt.
The toy and children’s clothing chain is the latest in a growing number of brick-and-mortar retailers to declare bankruptcy, joining Gander Mountain, Gordmans Stores, Gymboree, hhgregg, The Limited, Payless ShoeSource, RadioShack, rue21, and Wet Seal.
The filings mark “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 Dave Brandon, chairman and CEO, in a statement.
Brandon said the company will work with creditors to restructure $5 billion in long-term debt. He said this 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 company’s said its 255 stores outside the United States and Canada are not part of the filings, that its websites and loyalty programs will continue as usual, and that it will soon begin hiring extra help for the holiday season.