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You can find the current article at its original source at https://www.theguardian.com/business/2017/sep/19/toys-r-us-files-for-bankruptcy-in-the-us-and-canada
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| Toys R Us files for bankruptcy in the US and Canada | Toys R Us files for bankruptcy in the US and Canada |
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| Toys R Us has filed for bankruptcy protection in the US and Canada after running up $5bn (£3.7bn) of debts and struggling to compete in the age of internet shopping. | Toys R Us has filed for bankruptcy protection in the US and Canada after running up $5bn (£3.7bn) of debts and struggling to compete in the age of internet shopping. |
| The world’s largest toy store chain said it had filed for Chapter 11 to restructure its debts and work out a sustainable path for its finances that will allow it to invest in long-term growth. | The world’s largest toy store chain said it had filed for Chapter 11 to restructure its debts and work out a sustainable path for its finances that will allow it to invest in long-term growth. |
| The New Jersey-based company, which employs 64,000, said the vast majority of its 1,600 stores around the world were profitable, adding that its businesses outside North America, including the UK, were not affected. | The New Jersey-based company, which employs 64,000, said the vast majority of its 1,600 stores around the world were profitable, adding that its businesses outside North America, including the UK, were not affected. |
| The group’s history dates back to the 1950s in the US. It arrived in the UK, where it now employs more than 2,500, in 1985. It has 110 stores in the UK, as well as a website launched in 1996. | |
| The group confirmed it was opening further shops in the UK, with four more planned before Christmas in High Wycombe, Sunderland, Blackburn and Craigleith in Scotland. It is also revamping its flagship stores in Bristol and Brent Cross shopping centre in London. | |
| “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, the chairman and chief executive. | “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, the chairman and chief executive. |
| “Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5bn 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.” | “Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5bn 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.” |
| The 60-year-old company, which is facing about $400m of debt repayments in 2018, said it had secured about $3bn of financing from various lenders, including a JP Morgan-led bank syndicate, to keep its stores open “as usual” as it approaches its key Christmas selling period. | The 60-year-old company, which is facing about $400m of debt repayments in 2018, said it had secured about $3bn of financing from various lenders, including a JP Morgan-led bank syndicate, to keep its stores open “as usual” as it approaches its key Christmas selling period. |
| Brandon said: “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. We thank our vendors for their ongoing support through this important season and beyond.” | Brandon said: “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. We thank our vendors for their ongoing support through this important season and beyond.” |
| Analysts say the company’s large network of shops are an expensive burden at a time when online giants Amazon and Walmart are discounting toys to steal their shoppers. | Analysts say the company’s large network of shops are an expensive burden at a time when online giants Amazon and Walmart are discounting toys to steal their shoppers. |
| The toy group said that as part of its proceedings it had sought approval to continue paying staff wages and benefits, honour customer programmes, and pay suppliers as usual. | The toy group said that as part of its proceedings it had sought approval to continue paying staff wages and benefits, honour customer programmes, and pay suppliers as usual. |