Although the writing has been on the wall for years, recent days brought word that Toys’R’Us was considering filing for Chapter 11 bankruptcy protection. Last night, word came through that this decision has been finalized. From Bloomberg:
Toys “R” Us Inc., the once-dominant specialty retailer and ultimate toyland for a generation of post-war baby boomers, filed for bankruptcy thanks to a crushing debt load from a previous buyout and relentless competition from warehouse and online retailers.
The bankruptcy filing is the latest blow to a brick-and-mortar retail industry reeling from store closures, sluggish mall traffic and the gravitational pull of Amazon.com Inc., which has revolutionized the way people consume with affordable online offerings and global home delivery service.
A dozen-plus major retailers have filed for creditor protection this year, including Payless Inc., Gymboree Corp. and Perfumania Holdings Inc., all of which are using the Chapter 11 process to close underperforming stores and expand online operations.
What will the future hold for TRU after this financial restructuring? Only time will tell. What are your thoughts on the filing? Sound off on the Cobra Island Forums!