Deals
Toys ‘R’ Us Collapses Into Bankruptcy Thanks to Crushing Debt
- Plans to build inventory and calm vendors in time for holidays
- Retailer cites “race to the bottom” against Amazon, Walmart
Toys 'R' Us May File for Chapter 11
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Toys “R” Us Inc., the ultimate toyland for a generation of postwar baby boomers, filed for bankruptcy thanks to a crushing debt load from a buyout and relentless competition from warehouse and online retailers.
The retailer, which has 1,600 stores in 38 countries, said its hand was forced after an attempt to restructure out of court sparked a press report about a potential bankruptcy, spooking critical vendors and credit insurers. But it intends to make the best of the situation and revive its business in time for the holiday shopping season.