This iconic store from our childhoods may be closing forever
In news that we just don’t need today because it threatens to destroy our inner-child: Toys “R” Us has filed for bankruptcy, and might eventually close down all its stores. Founded in 1948 and headquartered in Wayne, New Jersey, this iconic toy store was a major part of our childhoods — so we’re not really sure how to handle this.
Less than two years ago, we reported the franchise had to close down its flagship store in New York, and now the company might be closing all its doors.
The toy retailer filed for Chapter 11 bankruptcy protection on Monday, September 18th. The decision comes as part of an effort to pay down $5 billion in debt that the company owes as a result of a leveraged buyout in 2005. Chapter 11 protection allows the company to restructure $400 million in debt due in 2018, another $1.7 billion due in 2019, and then renegotiate the rest, according to CNBC.
“Today marks the dawn of a new era at Toys “R” Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” said Dave Brandon, the company’s chairman and CEO, in a release announcing the filing.
With the increase of online shopping and rise of companies like Amazon, Ebay, and other online retailers, companies have struggled to compete in two main areas: baby goods and toys — so it’s no wonder that the iconic toy store has been affected.
It’s sad to see the beloved store going through such a rough patch, but all may not be lost. Many companies have successfully come out on the other side of bankruptcy. So here’s to hoping our favorite toy store will be around for many years to come.