While the company claims it will continue to operate 1600 stores, bankruptcy filings tend to be the end of the road for retailers. The erosion of the underlying fundamentals of the business won't be changed through the BK process.
(CNNMoney) Toys 'R' Us is filing for bankruptcy protection.
The toy retailer has filed for Chapter 11 bankruptcy protection in the United States, it said in a statement on Monday. Meanwhile, it said its Canadian subsidiary will "seek protection in parallel proceedings" in the Ontario Superior Court of Justice.
The company said it will use the proceedings to restructure its $5 billion outstanding debt.
Despite the bankruptcy filing, Toys 'R' Us said its 1,600 stores worldwide continue to operate. The filing will not include around 255 Toys 'R' Us stores outside the U.S. and Canada.
The New Jersey-based retailer has nearly 65,000 employees globally."