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Facing $5 Billion in Debt, Toys R Us Begins Bankruptcy Proceedings

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Following some speculation about its financial woes, Toys R Us has officially filed for Chapter 11 Bankruptcy. The company is currently struggling with about $5 billion in debt, and hopes the bankruptcy filing can help them restructure while still keeping their stores open for the holiday season.

As a result of the bankruptcy filing Toys R Us has received over $3 billion in debtor-in-possession financing from a number of lenders. Toys R Us says this money will help them immediately improve their financial situation, and keep their stores and operations well maintained leading into the busiest season of the year.

Dave Brandon, Toys R Us Chairman and Chief Executive Officer, had this to say of the filing in a statement: "Together with our investors, our objective is to work with out debtholders and other creditors to restructure the $5 billion of long term debt on our balance sheet ... and strengthen out competitive position in an increasingly challenging and rapidly changing retail marketplace."

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