The US toy shop giant announced on Monday that it had filed for Chapter 11 bankruptcy with a court in the southern state of Virginia. It intends to make a similar petition for its Canadian subsidiary.
The retail chain has 5 billion dollars in long-term debt. It operates more than 800 outlets in the United States.
Toys”R”Us also has stores in 38 countries, including Japan. But the firm says operations outside of the US and Canada are not part of the protection proceedings.
Toys”R”Us is known for its large stock of merchandise. Its flagship store in New York was a popular tourist spot, featuring a Ferris wheel.
But the chain has been losing out to the rapid growth in online shopping on Amazon.com and other retail sites.
Toys”R”Us CEO Dave Brandon said the proceedings would provide the firm with greater financial flexibility to invest in its business, and strengthen its competitive position worldwide.
Toys”R”Us-Japan operating as usual
A spokesperson for Toys”R”Us Japan says the company is operating as usual.
The spokesperson said on Tuesday that all stores in Japan are open for business. Toys”R”Us in the United States and its subsidiary in Canada filed for bankruptcy on Monday.
The spokesperson said the filings would only have a limited impact on the businesses in Japan.
Toys”R”Us began operating in Japan in 1991, and has 160 outlets in the country.
Source and image: NHK
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