Toys ‘R’ Us Files for Bankruptcy, Crippled by Competition and Debt
- 7 years ago
Toys ‘R’ Us Files for Bankruptcy, Crippled by Competition and Debt
In a statement on Monday night, Toys “R” Us said the filing would help the company invest in long-term growth
and “fuel its aspirations to bring play to kids everywhere and be a best friend to parents
Toys “R” Us, one of the world’s largest toy store chains, has filed for bankruptcy protection,
becoming the latest casualty of the pressures facing brick-and-mortar retailers.
The company made the Chapter 11 bankruptcy filing late Monday night in federal court in Richmond, Va., acknowledging
that it needed to revamp its long-term debt totaling more than $5 billion.
The private equity firms Kohlberg Kravis Roberts and Bain Capital, as well as the real estate firm
Vornado Realty Trust, purchased the company in a leveraged buyout for about $6 billion in 2005.
In a statement on Monday night, Toys “R” Us said the filing would help the company invest in long-term growth
and “fuel its aspirations to bring play to kids everywhere and be a best friend to parents
Toys “R” Us, one of the world’s largest toy store chains, has filed for bankruptcy protection,
becoming the latest casualty of the pressures facing brick-and-mortar retailers.
The company made the Chapter 11 bankruptcy filing late Monday night in federal court in Richmond, Va., acknowledging
that it needed to revamp its long-term debt totaling more than $5 billion.
The private equity firms Kohlberg Kravis Roberts and Bain Capital, as well as the real estate firm
Vornado Realty Trust, purchased the company in a leveraged buyout for about $6 billion in 2005.