A couple of weeks ago we had reported that Toys R Us was mulling with the idea of filing for bankruptcy. Now, comes the confirmed news that thee toy company has filed for bankruptcy.
The company listed debt and assets of more than $1 billion each in Chapter 11 documents submitted last Monday at the US Bankruptcy Court in Richmond, Virginia, it is said.
Before filing, the chain secured more than $3 billion in financing from lenders including a JPMorgan Chase & Co-led bank syndicate and certain existing lenders to fund operations while it restructures, said a company statement. The funding will be subject to court approval, though.
Though the company didn’t announce plans to close stores, it said that its locations across the globe would continue normal operations.
An email from TRU spokesperson Michael Freitag said, “Like any retailer, decisions about any future store closings and openings will continue to be made based on what makes the best sense for the business.”
The news will still come as a blow to the licensing business, however. This summer has seen the retailer significantly ramp up its costume character appearances and in-store initiatives featuring character brands including a successful stop by the Trolls Truck in August and midnight openings for Force Friday II earlier this month.
TRU reported a net loss of $164 million in the quarter ended April 29, compared to $126 million for the same period in the prior year. It hasn’t shown an annual profit since 2013.