Partly Cloudy

Partly Cloudy

max temp: 13°C

min temp: 6°C

Search

Toys’R’Us files for bankruptcy protection in US and Canada

PUBLISHED: 09:45 19 September 2017 | UPDATED: 13:04 19 September 2017

Shoppers shop in a Toys R Us store on Black Friday in Miami. Toys R Us, the pioneering big box toy retailer, announced late Monday, Sept. 18, 2017 it has filed for Chapter 11 bankruptcy protection while continuing with normal business operations. Picture: AP PHOTO/ALAN DIAZ

Shoppers shop in a Toys R Us store on Black Friday in Miami. Toys R Us, the pioneering big box toy retailer, announced late Monday, Sept. 18, 2017 it has filed for Chapter 11 bankruptcy protection while continuing with normal business operations. Picture: AP PHOTO/ALAN DIAZ

Retail giant Toys’R’Us has filed for bankruptcy protection in the US and Canada after struggling amid mammoth debts and online competition.

A Toys'R'Us store. Picture: RUI VIEIRA/PA WIREA Toys'R'Us store. Picture: RUI VIEIRA/PA WIRE

But the group, which has around 1,600 stores worldwide and 64,000 employees, said its stores outside of the US and Canada - including the UK and Europe, as well as around 255 licensed stores and a joint venture in Asia - were not included in the so-called Chapter 11 filing.

Toys’R’Us said its stores would operate “as usual” while it looks to restructure a 5.6 billion US dollar (£3.6bn) debt mountain.

The New Jersey-based chain has secured more than three billion dollars (£2.2bn) in financing from a syndicate of lenders to help keep its stores open.

It comes ahead of the all-important Christmas season, which makes up around 40% of the group’s annual sales.

The filing is the latest example of turmoil in the retail industry as the shift online takes its toll on established players.

Dave Brandon, chairman and chief executive of Toys’R’Us, said: “We are confident that we are taking the right steps to ensure that the iconic Toys’R’Us and Babies’R’Us brands live on for many generations.”

He added: “As the holiday season approaches, our global team members are ready to serve the millions of kids and families who will be shopping with us.”

The private equity-owned company sought to assure that it will be working to ensure it is fully stocked and that products are delivered on time.

Toys’R’Us has suffered falling like-for-like sales for three quarters in a row and reported a quarterly net loss of 164 million dollars (£121m) on sales of 2.2 billion dollars (£1.6bn) in June.

Search hundreds of local jobs at Jobs24

One person has been arrested after a man was stabbed on Cemetery Road in Ipswich.

Balmy autumn temperatures have kept winter at bay in Suffolk and north Essex this October – but temperatures could plunge into single figures this week, according to forecasters.

A torchlit parade and burning boat formed the spectacular finale to Suffolk’s first Saxon and Viking show.

Older people in Ipswich are being encouraged to take part in the ActivLives sessions.

Opinion: Why I hate taking selfies

Yesterday, 16:52

Nowadays, wherever you go and whoever you’re with, it seems almost automatic for many people to instantly let the world know by taking a selfie.

With three walks on offer and a guide booklet packed with information the curious about Ipswich walk is a great day out.

A primary school in Hadleigh has seen its Ofsted rating soar from ‘Requires Improvement’ to ‘Good’ following a recent inspection.

Watch our video tour of The Old Rectory, a £1.35m home set on 1.6 acres of land for sale in Tattingstone.

Tougher punishment for speeding may be helping to cut offences in Suffolk, new research has suggested.

Make sure your plan your journeys around the road works being carried out by Highways England.

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Ipswich Star daily newsletter
Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24