Toys ‘R’ Us has filed for bankruptcy protection in the United States and says it intends to follow suit in Canada.
The company filed Chapter 11 documents late Monday in U.S. Bankruptcy Court in Richmond, Virginia and says its Canadian subsidiary plans to seek protection in parallel proceedings under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice.
The chain also said it had secured $3 billion (U.S.) in financing to stay open while it restructures its outstanding debt and establishes a sustainable capital structure to invest in long-term growth.
Toys ‘R’ Us said the «vast majority» of its approximately 1,600 Toys ‘R’ Us and Babies ‘R’ Us stores around the world and its web portals continue to operate as usual. There are 70 stores in Canada.
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