Toys ‘R’ Us files for bankruptcy and announces widespread store closings

September 19, 2017

Toys R US

by Patricia Garrett

Toys “R” Us, the iconic toy retailer founded in 1948, has filed for bankruptcy,  According to the New York Times, the company (which also own Babies “R” Us and the FAO Schwarz retail brands) owes more than $5 billion in long-term debt to its creditors,  which include Mattel and Hasbro.  Toys “R” Us currently has more than 1,600 retail stores around the world (about 800 of those stores are in the U.S.), and the vast majority of toys “R” Us stores are expected to be closed in 2018. The company filed for Chapter 11 bankruptcy on September 18, 2017.

Originally headquartered in Washington, D.C., Toys “R” Us is currently based in Wayne, New Jersey. In recent years, the company has faced stiff competition from Amazon, Walmart and Target, which have been able to offer larger toy inventories and bigger discounts.

Toys “R” Us chairman/CEO Dave Brandon commented in a statement about the bankruptcy: “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,”