KUALA LUMPUR: Toys 'R' Us Inc, the US’ largest toy store chain, has assured toy enthusiasts that its 1,600 Toys ‘R’ Us and Babies ‘R’ Us stores around the world – the vast majority of which are profitable – are continuing to operate as usual, despite it filing for bankruptcy protection on Monday.
The toy retailer said the vast majority of the stores are profitable.
In a statement today, Toys ‘R’ Us said customers can also continue to shop for the toy and baby products they are looking for online on its newly-launched www.toysrus.com and www.babiesrus.com web stores.
Customers should expect its loyalty programs, including its Rewards ‘R’ Us, Geoffrey’s Birthday List and Babies ‘R’ Us Registry, to continue as normal, it added.
Toys ‘R’ Us said its operations outside of the US and Canada, including its 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings.
“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 chairman and chief executive officer Dave Brandon.
“Together with our investors, our objective is to work with our debtholders and other creditors to restructure the US$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.
“We are confident that these are the right steps to ensure that the iconic Toys ‘R’ Us and Babies ‘R’ Us brands live on for many generations,” he said.
Toys ‘R Us said it had received a commitment for over US$3 billion in debtor-in-possession financing from various lenders is expected to immediately improve its financial health and support its ongoing operations during the court-supervised process.
“Toys ‘R’ Us is committed to working with its vendors to help ensure that inventory levels are maintained and products continue to be delivered in a timely fashion,” it said.
In conjunction with the Chapter 11 process in the US, the company has filed a number of customary motions with the bankruptcy court seeking authorisation to support its operations during the restructuring process.