We might be saying goodbye to family trips to Toys “R” Us.

Toys “R” Us last night announced that the company has voluntarily filed for Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court. The company’s Canadian subsidiary today intends to seek protection in parallel proceedings under the companies’ Creditors Arrangement Act (“CCAA”) in the Ontario Superior Court of Justice. Toys “R” Us intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth.

The company’s operations outside of the U.S. and Canada, including its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the bankruptcy proceedings.

But, change doesn’t happen overnight. The company’s approximately 1,600 Toys “R” Us and Babies “R” Us stores around the world will continue to operate as usual. Customers should expect the company’s loyalty programs, including its Rewards “R” Us, Geoffrey’s Birthday List, and Babies “R” Us Registry, to continue as normal.

“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,” said Dave Brandon, chairman and CEO in a statement. “Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide. We are confident that these are the right steps to ensure that the iconic Toys “R” Us and Babies “R” Us brands live on for many generations.”

Toys “R” Us has received a commitment for more than $3 billion in debtor-in-possession (“DIP”) financing from various lenders, including a JPMorgan-led bank syndicate and certain of the company’s existing lenders, which, subject to court approval, is expected to immediately improve the company’s financial health and support its ongoing operations during the court-supervised process.

Toys “R” Us is working with toy manufacturers to help ensure that inventory levels are maintained and products continue to be delivered in a timely fashion, AKA you should still be able to find the hottest toys your kids are begging for.

Additional information can be accessed by Toys “R” Us’ restructuring website.

About the author

Marissa Silva

Marissa Silva

Marissa Silva is editor-in-chief of the Pop Insider and the Toy Insider, the leading consumer holiday gift guide and toy review and news website. As a professional toy reviewer and an industry expert, she consistently reports on toy, entertainment, and pop culture trends and hot products. In addition to digital content management, Marissa contributes feature-length articles to the Pop Insider and leading toy industry trade magazine The Toy Book, providing retailers, manufacturers, and licensors with information on the latest in toy news. Marissa has been featured on the TODAY Show, Good Morning America, Fox and Friends, ABC World News Now, MSNBC, CBS, NY1, WPIX, and more. A board game fanatic and professional toy reviewer, she spends most of her free time shopping for superhero T-shirts, crushing at Mario Kart, and anxiously awaiting her Hogwarts acceptance letter. You can follow her on Twitter and Instagram @thattoygirl.

archivearrow-chevron-downarrow-chevron-left-greyarrow-chevron-leftarrow-chevron-rightarrow-fatarrow-left-blackarrow-left-whitearrow-right-blackarrow-rightarrow-roundedbookscalendarcaret-downclose-whiteclosedocumenteditorial-archiveeyefacebook-squarefacebookfilesgifthamburgerheadinghearthomeinstagram-squareinstagramlatestlinkedin-squarelinkedinmailmedia-inquiresmessagenewsopen-boxpagination-leftpagination-rightpauseplayprintproduct-archiverecent-productssearchsharesort-filterspotifysunteamtiktoktime_purpletimetrendingtvtwitter-squaretwitteryoutube