Oh no. Hope the stores in Singapore will remain open for years.
I think Toy R Us gave us many memories in our childhood and now to parents as new found memories.
It's a pity if it shuts down.
Toys 'R' Us Files For Bankruptcy, But Will Keep Stores Open
Toys 'R' Us, the children's toy store struggling from a massive amount of debt and fierce online competition, has filed for bankruptcy.
The retailer sought Chapter 11 bankruptcy protection late Monday evening in federal court, seeking a way out of the $5 billion in debt it has racked up. It said it would keep its 1,600 Toys 'R' Us and Babies 'R' Us stores open as normal heading into the busy holiday season.
Toys 'R' Us has been crippled by debt since it was acquired by private equity firms KKR and Bain Capital, plus real estate company Vornado Realty Trust, in a $6.6 billion leveraged buyout in 2005. It had started the process of going public in 2010, but ultimately pulled the filing, citing "unfavorable market conditions."
The company described the bankruptcy as a way to work with its creditors to get back on solid financial footing and invest in long-term growth in a difficult retail environment.
"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," said CEO Dave Brandon in a statement.
The company has received more than $3 billion in debtor-in-possession financing from J.P.Morgan Chase and other lenders, which will help it sustain operations during the bankruptcy process.
Toys 'R' Us, which began as a single store for baby carriages and cribs in Washington, D.C. in 1948, quickly became a favorite destination for children's toys. In recent years, the big-box retailer snatched up competitors like FAO Schwarz and KB Toys, pursued international expansion and slashed prices in an effort to continue attracting shoppers to its colorful aisles.
However, sales have slipped in the face of competition from giants like Amazon and Wal-Mart. In its latest quarter, same-store sales fell by 4.1%, helping the retailer to post losses of $164 million.
While Toys 'R' Us said the "vast majority" of its stores are profitable, it will likely be reevaluating at its physical footprint during the bankruptcy process.
Toys 'R' Us joins a parade of other retailers that have sought bankruptcy protection this year, including shoe store Payless and children's clothing retailer Gymboree. Many other retailers have aggressively closed stores and laid off employees, instead shifting resources to online capabilities.