TOUGH TIMES

Toys ‘R’ Us Files for Bankruptcy

Latest big-box to see sales shrink amid rising competition from online retailers.

Toys “R” Us filed for Chapter 11 bankruptcy protection Monday, saying “financial constraints” have been holding the toy chain back. With much of the company’s debt stemming from its $7.5 billion leveraged buyout in 2005, the toy retailer said it plans to “restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth.” The toy chain secured $3 billion in debtor-in-possession financing to remain open while it restructures. The toy chain, which hasn’t shown an annual profit since 2013, said business will continue as usual at its 1,600 stores worldwide during the Chapter 11 process.