Will Toys R Us File for Bankruptcy?
Do you still buy toys from your kids at Toys R Us? Or do you shop online, or get toys somewhere else?
Analysts are expecting Toys R Us to file for bankruptcy, with an announcement coming as early as this week or even today. Bloomburg.com is reporting that the filing would allow Toys “R” Us to restructure $400 million in debt that comes due next year. They say people with knowledge of the situation say its vendors have been curtailing shipments with concern that Toys “R” Us might not be able to pay its bills.
Apparently the biggest problem seems to be debt from a leveraged buyout attempt more that 10 years ago. Chapter 11 protection would allow the company to restructure $400 million in debt due in 2018 then renegotiate the rest.
There's more at this Business Insider link