Iconic toy store chain Toys “R” Us filed for bankruptcy Monday night after struggling for years to pay down billions of dollars in debt and remain relevant in an era of online shopping.
The company said its 1,600 Toys “R” Us and Babies “R” Us locations would operate “as usual,” and that it would work with its investors to address roughly $5 billion in debt.
“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,” Dave Brandon, chairman and chief executive of Toys “R” Us, said in a statement. “We are confident these are the right steps to ensure that the iconic Toys ‘R’ Us and Babies ‘R’ Us brands live on for many generations.”
Toys “R” Us is currently owned by three companies – private equity firms Kohlberg Kravis Roberts and Bain Capital, and real estate firm Vornado Realty Trust – that purchased it for about $6 billion in 2005.
(c) 2017, The Washington Post · Abha Bhattarai