Toys 'R' Us Files For Chapter 11 Bankruptcy Protection To Restructure Debt
SACRAMENTO (CBS13) — Venerable toy store chain Toys 'R' Us has filed for Chapter 11 bankruptcy protection as it seeks to restructure its debt obligations.
The company announced the move late on Monday night.
There are no planned store closures, and the company expects to operate as normal through the holiday season.
A statement by the company says it is trying to work with $5 billion of debt on its balance sheet and has commitments for around $3 billion in liquidity to meet obligations through the restructuring.
TOYS 'R' US LETTER TO CUSTOMERS
Since 1948, Toys"R"Us has served kids and families around the world by offering great service and a wide assortment of toy and baby products. Nearly 70 years later, that commitment to our customers remains stronger than ever as we work to be champions of play and a best friend to parents everywhere. We want you to have an outstanding experience whenever, wherever and however you choose to shop with us and this holiday season is no exception. We have a number of exciting initiatives underway including improvements to our stores and loyalty program, and we are leveraging technology to bring our physical stores to life. We've also just recently launched a new web store to make it even easier to shop with us.
We are also working to strengthen our financial position. The Company, some of our U.S. subsidiaries and our Canadian subsidiary proactively and voluntarily filed for Chapter 11 in the U.S. and began parallel reorganization proceedings in Canada. The Company's operations outside of the U.S. and Canada are not part of the Chapter 11 filing and CCAA proceedings. Through these important actions, we expect to restructure our long-term debt and instead use these resources to reinvest in our business, so that we can continue to improve your experience in our stores and online and separate ourselves from our competitors in today's rapidly changing retail landscape.
What This Means for You: We Are Open for Business
• Our Toys"R"Us and Babies"R"Us stores around the world are open, and you can also continue to shop online
on our newly launched www.toysrus.com and www.babiesrus.com web stores. Toys"R"Us continues to offer
the hottest toys this holiday season, along with an outstanding shopping experience. We are preparing for the
holiday season and are excited about the many events, new technology and features we'll have in our stores and
online.• We fully expect our customer programs to continue as normal. We expect to continue honoring return policies,
warranties and gift cards. Customers should expect our loyalty programs, including Rewards"R"Us, Geoffrey's
Birthday List and the Babies"R"Us Registry, to continue as normal in their current forms. International customer
programs are expected to continue as usual as well.• You can continue to count on a world-class shopping experience and outstanding service whenever, wherever
and however you choose to shop with us this season and beyond.As always, we thank you for your continued support and for shopping with us. If you have questions about
this process, you can find FAQs and additional information on the restructuring page of our website at www.
toysrusinc.com/restructuring.For questions about products, warranties or rewards, please contact our Customer Service Department at (800)
TOYSRUS or (800) 869-7787 between the hours of 8 AM and 11 PM ET.We are confident that the steps we are taking will help ensure that Toys"R"Us will be the champion of play for
kids everywhere and Babies"R"Us can be a best friend for parents when it comes to caring for their infants and
babies.We look forward to serving you this holiday season and beyond.
