Toys ’R’ Us in pledge over UK stores after Chapter 11 filing
TOYS ’R’ Us has assured its stores will remain open after filing for bankruptcy protection in the US and Canada ahead of the crucial festive season amid mammoth debts and increasing online competition.
America’s largest toy stores chain, which has around 1,600 stores worldwide and nearly 65,000 employees, said most of its shops remained profitable and would operate “as usual” while it looks to restructure a 5.6 billion US dollar (£3.6bn) debt mountain.
It also confirmed its stores outside of North America – including the UK and Europe, Australia, as well as around 255 licensed stores and a joint venture in Asia – were not affected by the so-called Chapter 11 filing.
The group has 110 stores and more than 2,500 staff across the UK, but stressed its European arm was a separate entity to the North American business.
The Chapter 11 filing comes ahead of the all-important Christmas season, which makes up a large chunk of the group’s annual sales.
It is the latest example of turmoil in the retail industry as the shift online takes its toll on established players.
Dave Brandon, chairman and chief executive of Toys ’R’ Us, said: “We are confident that we are taking the right steps to ensure that the iconic Toys ’R’ Us and Babies ’R’ Us brands live on for many generations.”
He added: “As the holiday season approaches, our global team members are ready to serve the millions of kids and families who will be shopping with us.”