"Noooo, bring my TOYS back!" TOYS R US files bankruptcy
November 30, 2017
Buying toys during the holiday season will never be the same without "Toys R Us". It is an American store selling toys and juvenile products since 1948. They have committed to be able to provide games and toys to every kid of every generation.
Needless to say, those who grew up picking up toys in a "Toy R Us" stores are saddened by the company's filing of Chapter 11 Bankruptcy.
Last Sept 17, 2017, Toys R Us joined into the wave of major stores and establishment to file bankruptcy. Earlier this year, Gymboree, Payless ShoeSource and Rue21 filed bankruptcy as well. Filing bankruptcy few months before the biggest selling seasons just shows how tight it already is for Toys R Us' finances. But what exactly is Chapter 11 Bankruptcy and what does it do? According to the uscourts.gov website, a case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a reorganization bankruptcy.
Chapter 11 is typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership.
The CEO of the company, Dave Brandon, is basically saying that they are not closing down. "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". Due to tight competition in the market and a huge debt amounting to $4.9, the company has been compelled to take this route.
The company believes that these are the right steps to do to ensure that Toys R Us and Babies R Us brand will live on for a long time. They also commit to continue to do business in their 1600 branches all over the world even after the bankruptcy is filed.