American toy company Toys “R” Us will continue operating normally in Canada while the U.S. headquarters undergoes financial restructuring.
Toys “R” Us filed for chapter 11 bankruptcy in the U.S. on September 18th, 2017. The company argued that the move would allow it to deal with its growing $5 billion USD debt, while also borrowing an additional $2 billion to stay afloat during the upcoming holiday season.
In spite of trouble with its American branches, the company’s Canadian subsidiary — Toys “R” Us Canada — applied and was subsequently granted creditor protection by the Ontario Superior Court on September 20th, 2017.
According to CBC News, Toy “R” Us Canada defended their operations by citing steady financial stability.
Toy “R” Us might be the most well-known toy company in the world, but even it was unable to defend itself against the presence of online retailers like Amazon and Walmart.com.
According to Forbes, the company’s retail sales fell 4.1 percent in the last quarter, with estimated losses approaching $164 million USD.
Toys “R” Us is well-known for its figurines, stuffed animals and games, but the company also carries a number of consumer tech products as well. Consumers can purchase video games, remote-controlled toys, and connected toys as well.
Source: Toys “R” Us