Stores across the world will continue ‘normal operations’ says the retailer.
After much speculation and press coverage over the health of the business, Toys R Us has filed for bankruptcy.
The company listed debt and assets of more than $1 billion each in Chapter 11 documents submitted Monday at the US Bankruptcy Court in Richmond, Virginia, reported Bloomberg.
Prior to 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, according to a company statement. The funding is subject to court approval.
The company didn’t announce plans to close stores, and said 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.
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