The American toy retailer that employs thousands of workers around the globe filed a request for bankruptcy protection due to enormous debts it has run into since the rise of online shopping.
The international chain has 1,600 stores worldwide Photo Credit: Reuters/Channel 2 News
The world’s biggest toy retailer Toys R Us filed for bankruptcy and protection from creditors due to immense debt. The company has run up debts as high as $5 billion, of which it must pay off $400 million this year. The retailer filed the request in Virginia and joined other companies that experienced a major sales drop resulting from the rise of online shopping.
The request will provide the company with a funding of $3 billion that will enable it to pay off its debts to its existing creditors. Toys R Us employs no less than 64,000employees and has 1,600 branches worldwide. The company has not registered profits since 2013 and reported a loss of $164 million at the end of the first 2017 quarter in April.