Toys R Us files for bankruptcy, but stores to remain open

An image capture from the Woolpert web site. The slider in the center allows the user to distinguish before and after-images of Irma’s destruction

The company's Canadian unit intends to seek protection in parallel proceedings under the Companies" Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice, Toys "R' Us said in a statement.

The company says its roughly 1,600 stores, which include Babies R Us, will remain open.

Dave Brandon, Chairman and Chief Executive Officer of Toys" R " Us Inc., said: "We are confident that we are taking the right steps to ensure that the iconic Toys "R" Us and Babies "R" Us brands live on for many generations.

While Toys "R" Us expects to close an undisclosed number of underperforming stores as part of its restructuring, it expects to keep most of its 1,600 stores open.

The bankruptcies of almost three dozen retailers since the beginning of the year - many of them very small companies, but also well-known names like Payless Shoe Source, Gymboree Corp. and True Religion jeans - has resulted in job losses and store closings.

"R" Us Registry, will continue without changes, as will its current return policies.

In another blow to the brick and mortar retail business, giant toy retailer Toys "R" Us has filed for bankruptcy.

For Vornado, the deal was a bet on the value of Toys R Us's real estate.

If the bankruptcy restructuring can help Toys "R" Us get a handle on its debt, it's not insane to see a profit in sight.

In the company's most recently reported quarter, which ended April 29, the company had $2.2 billion in revenue and an operating loss of $54 million.

On the First Coast, Toys "R" Us has locations at the Markets at Town Center and in Orange Park.

Toy "R" Us in 2006 acquired FAO Schwarz a rival, but eventually shut down its store in NY on Fifth Avenue due to high costs.

The channel shift is not exceptional to toys, but it has fundamentally changed the economics of toy store retailing.

You could also use a 0 per cent credit card, which will allow you to spread the cost of your Christmas purchases without being charged interest.

The decisions it takes now, and the vision it sets out for the future will determine whether or not the Toys "R" Us story has a happy ending. The "tough retail environment this holiday and continued weakness in the entertainment and baby categories contributed to the erosion of our top line and an overall disappointing year", Brandon said. "We continue to offer unbelievable new seasonal products and great customer service, just as we always have".

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