As reported by Pix11, one of the largest retailers, which specializiruetsya on the sale of children’s products and toys, Toys ‘R’ Us, unable to cope with the decline of sales and all debts, was forced to declare bankruptcy.
Once the company’s stores Toys ‘R’ Us, founded in 1949, was a real Mecca for those looking for gifts for their children. Now, however, Toys ‘R’ Us lost in the shadow of giants such as Walmart and Amazon that resulted in falling sales.
Trying to stay afloat, Toys ‘R’ Us has accumulated almost $ 5 billion of debt.
Now, the company has sought protection from bankruptcy. Says CEO Dave Brandon, the filing for protection from bankruptcy «will provide the company with greater financial flexibility for investment in the business… and strengthen competitive position in an increasingly complex and rapidly changing retail market». The funds received under this program, Toys ‘R’ Us is going to send to debt restructuring.
As the manual says, despite financial constraints, all stores will continue to operate as usual. Now in full swing preparing for the festive season — the busiest, but also the most profitable time of year.
«We have about 1,600 stores Toys ‘R’ Us and Babies R Us worldwide, the vast majority of which generate revenue, they continue to work as usual,» — said in a statement.
In Toys ‘R’ Us has assured that the company will continue to adhere to all rules of return of goods, the provision of guarantees. Gift cards and customer loyalty programs will also remain in force.
