Toys 'R' Us Files For Bankruptcy

DETROIT, MI—Toys 'R’ Us late Monday filed for Chapter 11 bankruptcy protection, casting doubt upon the long-term future of the nation’s largest toy store chain. Toys 'R’ Us has about 1,600 stores and 64,000 employees nationwide.

The move comes as retailers are gearing up for the holiday season, a time obviously critical for the toy seller. Toys 'R’ Us said on its website that that none of its stores are closing, that its customer programs will continue as normal and all return policies, warranties and return policies will be honored.

“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,” company CEO Dave Brandon said in a statement.

Toys 'R’ Us had been working with a law firm that specializes in debt restructuring to deal with $400 million in debt due for repayment by 2018.

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Toys 'R' Us, based in Wayne, N.J., announced the filing late Monday. It said it was voluntarily seeking relief through the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond.

According to the Toys 'R' Us website, there are 10 stores in the metropolitan Detroit area:

• Toys 'R' Us at 14333 Eureka Road in Southgate
• Babies 'R' Us at 14544 Racho Road in Taylor
• Toys 'R' Us at 32700 John R. Road in Madison
• Toys 'R' Us at 32070 Gratiot Avenue in Roseville
• Babies 'R' Us at 32471 Gratiot Ave. in Roseville
• Toys 'R' Us at 29150 W. Seven Mile Road in Livonia
• Toys 'R' Us at 34800 Warren Road in Westland
• Toys 'R' Us at 13801 Lakeside Circle in Sterling Heights
• Babies 'R' Us at 12050 Hall Road in Sterling Heights
• Toys 'R' Us at 20111 Haggerty Road in Northville

Photo: Mike Mozart via Creative Commons

Information from the Associated Press was used in this report