TOTOWA, NJ - Toys "R" Us has filed for Chapter 11 bankruptcy protection in federal court in Richmond, Va. The retailer said Monday night that, "to achieve its financial objectives, Toys'R'Us and some of our U.S. subsidiaries and our Canadian subsidiary proactively and voluntarily filed for Chapter 11 of the Bankruptcy Code in the U.S."
The bankruptcy protection will allow the Wayne based chain to restructure its debt and use these resources to reinvest in the business.
Toys"R"Us says that its stores will remain open, and the chain said that it is ready for the upcoming holiday season. It says it will continue to offer the hottest toys this holiday season, and remain well stocked as it prepares.
“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 chief executive officer. “Our objective is to work with our debt holders 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."
How will this process affect customers?
Toys“R”Us is still serving customers as usual. Stores are open and our web stores and other online platforms will remain up and running.
- Toys“R”Us expects to continue honoring return policies, warranties and gift cards. Customers should expect loyalty programs, including Rewards“R”Us, the Toys”R”Us Wish List, Geoffrey’s Birthday Club and the Babies“R”Us Registry in the U.S., to continue as normal in their current forms.
- Customers can continue to count on outstanding service whenever, wherever and however they want to shop.
Will Toys“R”Us and Babies“R”Us continue to run typical sales and promotions?
- Yes. Toys“R”Us expects to continue operating stores, webstores and other online platforms as usual during this process.
- This includes the continuation of typical sales and promotions.
Can I still use my Rewards“R”Us points?
- Yes. Customers should expect loyalty programs, including Rewards“R”Us, to continue as normal in their current forms.
- Toys“R”Us encourages you to continue earning and using points at stores or online.
Can I still use my “R”Us Credit Card?
- Yes. Your “R”Us Credit Card will continue to be accepted.
- We encourage you to use your card to keep earnings Reward Points.
Can I still use my gift card?
- Yes. You can continue to use your gift cards in our Toys“R”Usstores or online.
- Toys“R”Us is focused on continuing to provide the best quality, value and selection in the toy and baby categories and outstanding service whenever, wherever and however you choose to shop with us this season and beyond.
Does this affect your return policies or warranties?
- No. Toys“R”Us fully expecta to continue honoring return policies and warranties.
- You can continue to count on a world-class shopping experience and outstanding service whenever, wherever and however you choose to shop with Toys“R”Us this season.
Additional information can be found at www.toysrusinc.com/restructuring. For questions about products, warranties or rewards, call 1-800-869-7787.
Toys"R"RUs was founded in 1948 and since then has served kids and families around the world by offering great service and a wide assortment of toy and baby products.