CHILDREN’S toy giant Toys ‘R’ Us has filed for bankruptcy in the US and Canada.
Rumours emerged yesterday the retailer, which has more than 1,600 shops worldwide and 64,000 members of staff, was considering filing ahead of the crucial Christmas shopping period.
Overnight it confirmed the north American arm of the retailer was seeking “Chapter 11 protection” from the US Bankruptcy court.
In a statement released to the Sun Online, the company said the move will have no impact on the UK and said it was “business as usual.”
The move will allow the company to restructure its business so it can tackle its debts.
It has around 5 billion dollars worth of debt and has struggled to cope with the shift in consumers doing more and more of their shopping online.
Chairman Dave Brandon, said: “Today marks the dawn of a new era at Toys R Us where we expect the financial constraints that have held us back will be addressed in a lasting and effective way.”
Following the announcement, customers were quick to take to social media, with many worried about the future of the business.
Toys R Us wouldn’t be the first high street name to be in difficulty since the rise of online shopping.
In April, Marks and Spencer announced it was closing six stores with 380 members of staff impacted.
Last year BHS closed its door after 88 years in business.
In 2009, childhood favourite Woolworths was shut for good.
The toy giant has so far not responded to the Sun Online’s request for comment.
