Toys 'R' Us has announced that it is now officially filing for bankruptcy, after rumors previously surfaced that the US toy store chain was headed in that direction.
NPR reports that Toys 'R' Us filed for Chapter 11 bankruptcy protection in Richmond, Va., late Monday; the company reportedly plans to use $3 billion in bankruptcy financing for merchandise purchasing and operations funding.
For now, the company seems intent on getting ahead of the bad press of its bankruptcy filing by reassuring customers that it will be able to fulfill their shopping needs during the upcoming holiday season.
As Toy 'R' Us Chairman and CEO Dave Brandon said in a statement, "As the holiday season ramps up, our physical and web stores are open for business, and our team members around the world look forward to continuing to put huge smiles on children's faces."
Toys 'R' Us' issues are being viewed as a natural evolution of the retail industry, with online retailers and all-in-one retail giants like Walmart and Target eroding the market space for a specialty stores like a Toys 'R' Us. Ironically, it's noted in the WSJ report that Toys 'R' Us itself was once the store that ate up the market space of smaller toy retailers like FAO Schwarz and Kay Bee Toys.
And so the market goes...