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Toys 'R' Us Has Filed For Bankruptcy Protection

Toys 'R' Us Has Filed For Bankruptcy Protection

By Ambia Staley

Following days of rumours, it's now official -- Toys 'R' Us has filed for bankruptcy protection.

Late Monday night, the toy retailer announced that they have filed for Chapter 11 bankruptcy protection in the U.S. and that they intend to follow suit in Canada.

Dave Brandon, company CEO said in a statement, "Together with our investors our objective is to work with our debt-holders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business ... and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide."

Despite the filing, the company claims that Toys 'R' Us and Babies 'R' Us stores will continue to run as usual. Customers will also be able to continue shopping online for their toys and baby products. The company also stated that it's committed to working with vendors to make sure their inventory levels are maintained.

Toy's 'R' Us employs nearly 65,000 people worldwide and runs approximately 80 stores across Canada and 880 stores in the United States. They also have approximately 780 international stores and more than 245 licensed stores -- none of which are impacted by the filings in the U.S. or Canada. While Toys 'R' Us maintains that it intends to run as usual, there is no official word about whether the company has plans to close unprofitable stores, or lay off any of its employees.

39 Comments

    • What goes around comes around. Anyone remember when there were small mom and pop toy stores in malls​? Ever wondered what happened to them?
    • Report Post
    • sandikosh wrote:
      Sep 8th, 2017 6:41 am
      What goes around comes around. Anyone remember when there were small mom and pop toy stores in malls​? Ever wondered what happened to them?
      You mean overpriced places like Toys Toys Toys? Fantastic I can't wait to pay a premium when toysrus is gone. You're so right :facepalm:
    • Report Post
  • NG
    • EP32k2 wrote:
      Sep 8th, 2017 7:14 am
      You mean overpriced places like Toys Toys Toys? Fantastic I can't wait to pay a premium when toysrus is gone. You're so right :facepalm:
      This. 'Mom and pop' stores (really it's just some local rich jerk usually) always over charge compared to chains.

      I hope TRU, Sears, Payless and every other chain out there in trouble can get their financial houses in order.

      It'll be better for the customer in the long run.
    • Report Post
    • Hi there,

      Yeah, retailer are getting worst and worst and somehow, only Walmart is doing well. Every retailer disappeared, price will go up, since there is no competition. Just look at Target when it disappeared.

      Ju Leon...
    • Report Post
    • This is alarming. We just had lots of gifts cards from our baby's party. Hopefully it would be a long process.

      One question comes to mind; since typically big box stores separate the US company to Canadian company. Would toys r us (/babys r us) Canada be affected?
    • Report Post
    • Franken wrote:
      Sep 8th, 2017 11:07 pm
      One question comes to mind; since typically big box stores separate the US company to Canadian company. Would toys r us (/babys r us) Canada be affected?
      Unlike Sears Canada and Sears Holdings that are separate (though related) entities, the Toys R Us Canadian unit is a subsidiary. It is the same corporation.
    • Report Post
    • NG wrote:
      Sep 8th, 2017 10:49 pm
      This. 'Mom and pop' stores (really it's just some local rich jerk usually) always over charge compared to chains.

      I hope TRU, Sears, Payless and every other chain out there in trouble can get their financial houses in order.

      It'll be better for the customer in the long run.
      So when I'm shopping for a baby seat and I want to touch and feel it, where should I go?
      Or heck, letting a kid walk through a store and picking a toy they like - one that they picked, where are they going to do that?

      Here, I have set up the Amazon parameters, you can have any toy from the list!
    • Report Post
    • I always wondered how they were surviving the onslaught from Walmart and Amazon.

      The customers who want to touch and feel stuff can go to Walmart. The Supercenters have groceries, toys, clothing, and automotive. The customers who don't mind shopping online visit Amazon. Toys 'R' Us is becoming stuck in the middle just like Best Buy.
    • Report Post
    • FatWallet wrote:
      Sep 8th, 2017 11:29 pm
      Unlike Sears Canada and Sears Holdings that are separate (though related) entities, the Toys R Us Canadian unit is a subsidiary. It is the same corporation.
      Toys r us Canada will most likely separate and continue to operate freely as it's own company, no doubt.
    • Report Post
    • DaVibe wrote:
      Sep 9th, 2017 12:30 am
      So when I'm shopping for a baby seat and I want to touch and feel it, where should I go?
      Or heck, letting a kid walk through a store and picking a toy they like - one that they picked, where are they going to do that?

      Here, I have set up the Amazon parameters, you can have any toy from the list!
      the problem with this is.. people do what you do, but end up buying from an online retailer just to save $10-30
    • Report Post
    • EP32k2 wrote:
      Sep 8th, 2017 7:14 am
      You mean overpriced places like Toys Toys Toys? Fantastic I can't wait to pay a premium when toysrus is gone. You're so right :facepalm:
      Really? The only thing Toys R Us has going for it around here is size. They definitely do not beat any of the local mom & pop toy stores on price. In fact I find Toys R Us to be way overpriced. And the local players have all sorts of decent toys and games that Toys R Us doesn't carry, and none of the absolute dreck that bloats Toys R Us.
    • Report Post
    • sandikosh wrote:
      Sep 8th, 2017 6:41 am
      What goes around comes around. Anyone remember when there were small mom and pop toy stores in malls​? Ever wondered what happened to them?
      I live just south of Calgary, and we have an independent toy store on the main street. It expanded a few years ago and has done well by bringing in a limited range of really good toys. It requires considerable knowledge and the ability to pick up on trends early to flourish in retail, which is a rare skill.
    • Report Post
    • Wow I had no clue it was this bad for Toys R Us. They don't really have much competition, ya Amazon is there.
    • Report Post
    • carmaster wrote:
      Sep 9th, 2017 11:07 am
      Wow I had no clue it was this bad for Toys R Us. They don't really have much competition, ya Amazon is there.
      There's isn't a product they sell that isn't available in another B&M store at a similar or better price, and that's in Canada. There's even more competition in the US.

      This is a good call by the OP, get rid of those GCs asap.
    • Report Post
    • EP32k2 wrote:
      Sep 8th, 2017 7:14 am
      You mean overpriced places like Toys Toys Toys? Fantastic I can't wait to pay a premium when toysrus is gone. You're so right :facepalm:
      I've always thought that I was paying a premium at Toys r Us. TRU is great for the selection of toys, but pricing has always been ridiculous.
    • Report Post
    • I've tried to buy Lego sets at TRU a few times and they never seem to have what I'm looking for in stock. Stopped bothering. Not surprised that they're going bankrupt given the shift to digital entertainment (which only constitutes a small amount of TRU's floorspace) and retail moving online.
    • Report Post
    • Ottomaddox wrote:
      Sep 9th, 2017 11:37 am
      There's isn't a product they sell that isn't available in another B&M store at a similar or better price, and that's in Canada. There's even more competition in the US.

      This is a good call by the OP, get rid of those GCs asap.
      Not true. They have exclusives...
    • Report Post
    • ALLCAPS wrote:
      Sep 9th, 2017 11:54 am
      I've always thought that I was paying a premium at Toys r Us. TRU is great for the selection of toys, but pricing has always been ridiculous.
      No doubt they are not cheap for a lot of stuff. But at least they have sales unlike mom and pop stores. Walmart's selection for toys is a joke as they don't carry a lot.
    • Report Post
    • I think the main reason for Toys R Us demise, have more to do with kids not playing with traditional toys, more than anything.

      Just look at the local parks, they are empty after school and on weekends! 15-20years ago they would be packed.

      Kids now a days just want their iPads and Computers.

      They should just downsize and serve the baby market... like selling car seats, strollers, baby bottles and teething toys.
    • Report Post
    • of course if you walk in and buy something at regular price, you are paying top dollar. we get a lot of stuff for a good deal because of their sales.

      Would be sad if they closed up.

      Walmart's toy selection is pathetic and we can't get a lot of stuff from Amazon Canada (almost always, the thing we want is only available from a third party seller only).
    • Report Post
    • Was just about to mention this when I saw your post. Toys & Wheels, Hans Christian Andersen and others got muscled out by them. Those were great stores that carried items TRU wouldn't.
      Once it was TRU only you had to deal with what their buyers wanted to sell you. Now the internet has changed that and mom and pop can sell online without have a large retail space.

      Also the TRU that was construction in the west end of my city violated various building codes, but the city allowed it because they were a big company (I had a friend who worked at planning & dev at the time).
    • Report Post
  • NG
    • EP32k2 wrote:
      Sep 9th, 2017 1:17 pm

      No doubt they are not cheap for a lot of stuff. But at least they have sales unlike mom and pop stores. Walmart's selection for toys is a joke as they don't carry a lot.
      This. TRU prices seem to be MSRP however, there's been semi-regular coupon codes and sales posted in the Hot Deals forums.

      The couple of local places that sell toys never have % sales or buy one get one half off etc.
      warpdrive wrote:
      Sep 9th, 2017 3:09 pm
      Walmart's toy selection is pathetic and we can't get a lot of stuff from Amazon Canada (almost always, the thing we want is only available from a third party seller only).
      Walmart is a trainwreck for toys. Always been. Ditto for Superstore. Back in the day Kmart had the best toys (in Canada and the U.S.). Zellers was decent as well.

      When the classic Mattel Ghostbusters figures came out I saw Ray twice at Walmart (lone figure sitting there both time) for $15...but I needed all four.

      The TRU website just had Ray in stock for $20 as well except for one time they had Ray and Peter.

      Where did I get what I was ready to suck it up and pay $80 for all four of them? At Dollarama for $4 each via a thread in Hot Deals.

      **** messed up. But at least I got the set...for $16 total.
    • Report Post
  • NG
    • DaVibe wrote:
      Sep 9th, 2017 12:30 am
      So when I'm shopping for a baby seat and I want to touch and feel it, where should I go?
      Or heck, letting a kid walk through a store and picking a toy they like - one that they picked, where are they going to do that?

      Here, I have set up the Amazon parameters, you can have any toy from the list!
      I'm not following since I support TRU and hope they find a way to stay open.

      However, for B&M toys, there's TRU (for now), Walmart, Superstore, EB Games and Giant Tiger

      HMV used to sell cool toys for nerds but the selection has gone to shit since Sunrise took over.
    • Report Post
    • NG wrote:
      Sep 9th, 2017 11:42 pm
      I'm not following since I support TRU and hope they find a way to stay open.

      However, for B&M toys, there's TRU (for now), Walmart, Superstore, EB Games and Giant Tiger

      HMV used to sell cool toys for nerds but the selection has gone to shit since Sunrise took over.
      I don't think any of those stores give Toys R Us a run for its money, especially when you ask a kid. Just saying, Toys R Us is a TOYS store. Most parents have ideas of bringing their kid to a TOY STORE, not the 6 rows of toys at Walmart.
      I guess times are changing, I don't know. This is a shame.
    • Report Post
    • Where else can you buy decent toys now? :( Other than superstores and walmart?
    • Report Post
    • EP32k2 wrote:
      Sep 9th, 2017 1:17 pm
      No doubt they are not cheap for a lot of stuff. But at least they have sales unlike mom and pop stores. Walmart's selection for toys is a joke as they don't carry a lot.
      I believe Walmart carries the most popular toys. With more stores, Walmart sells more $$$ in toys than Toys R Us.
    • Report Post
    • sandikosh wrote:
      Sep 10th, 2017 6:26 am
      I believe Walmart carries the most popular toys. With more stores, Walmart sells more $$$ in toys than Toys R Us.
      You are dead wrong.
    • Report Post
    • NG wrote:
      Sep 9th, 2017 11:42 pm
      I'm not following since I support TRU and hope they find a way to stay open.

      However, for B&M toys, there's TRU (for now), Walmart, Superstore, EB Games and Giant Tiger

      HMV used to sell cool toys for nerds but the selection has gone to shit since Sunrise took over.
      Eb games and hmv carry overpriced adult children novelty items. Hmv already evaporated and eb is stuck with all that unsellable junk and seeing sales plummet. Specialty markets like Lego and collectable action figurines are always going to be expensive no matter where you buy them but there is a tiny fraction of older adolescents and young adults who will spend any real amount of money on them.

      Wal-Mart is not that bad and carries a decent selection of toys both staples and seasonal. Costco Canadian Tire and superstore have good seasonal stock. Toys r us doesn't have the clearances we get from the discount retailers but the flyer promos are decent and coupon discounts are ok as well.

      Giant tiger and dollarama are a joke for toys just like the rest of the merch. Occasional gem hidden but mostly cheap end of life and blemished stuff mixed in with 90 percent cheap Chinese crap.

      Mom and pop shops can be really good for specialty products imports and quality educational toys. They flourish because we are a consumer society that has diverged into two markets.

      The first buy the latest baby and toddler 'trends' based on marketing and peer ownership, buy anything their kid dictates thanks to tv commercials and online marketing, and also as adult children spend a large amount of their money on collectable junk.

      The rest buy essentials and sale or clearance items of value when the price is right, are happy to accept hand me downs and don't think twice about a garage sale or kijiji purchase.


      This kinda surprised me tru is headed for bankruptcy. There is usually a ton of bad press and internet rumors beforehand a la target sears or hmv.
    • Report Post
    • EP32k2 wrote:
      Sep 10th, 2017 1:11 pm
      I should have said dead wrong for selection. They carry very little compared to toysrus. For example; pj masks is quite lacking at Walmart, hell they were so behind for paw patrol.
      Wal-Mart is smart in that they won't fill their store shelves and warehouses with flash in the pan tv show driven franchise products that fall out of fashion just as quickly as they are hot items.

      I'll be sure to watch for clearout pj masks toys at dollarama next summer. /sarcasm
    • Report Post
    • blainehamilton wrote:
      Sep 10th, 2017 4:20 pm
      I'll be sure to watch for clearout pj masks toys at dollarama next summer. /sarcasm
      Oddly enough, I saw some Shrek2 and JarJarBinks masks in the Hallowe'en stock at the 'rama. Someone has been waiting a long time to unload that stuff.
    • Report Post
    • Walmart toys sections are horrible. Messy and no selection I always thought it was just my local wal-mart but they are all like that. I always find toy r us cheaper than walmart.
    • Report Post
  • NG
    • DaVibe wrote:
      Sep 9th, 2017 11:46 pm

      I don't think any of those stores give Toys R Us a run for its money, especially when you ask a kid. Just saying, Toys R Us is a TOYS store. Most parents have ideas of bringing their kid to a TOY STORE, not the 6 rows of toys at Walmart.
      I guess times are changing, I don't know. This is a shame.
      I agree about a store full of toys being awesome but when I can get a big Batman '66 (Adam West) Batmobile with a bendable Adam West/Burt Ward Batman and Robin for the seats for only $25 at Winners I can't pass that up.
      blainehamilton wrote:
      Sep 10th, 2017 11:38 am
      Eb games and hmv carry overpriced adult children novelty items. Hmv already evaporated and eb is stuck with all that unsellable junk and seeing sales plummet. Specialty markets like Lego and collectable action figurines are always going to be expensive no matter where you buy them...


      Giant tiger and dollarama are a joke for toys just like the rest of the merch. Occasional gem hidden but mostly cheap end of life and blemished stuff mixed in with 90 percent cheap Chinese crap.
      The toys and collectables always sold well at HMV. They had other problems going on.

      I haven't found any cool toys recently at Giant Tiger but did get a Batman '66 poster there last year.

      As for Dollarama when I can get the Homer Simpsons, Krusty and Bart Lego Dimensions sets for $4 each as well as all four of the Mattel classic Ghostbusters for the same $4 each I'll be happy to wade through the crap.

      Both TRU and Walmart had the chance to sell me the Ghostbuster set at full price...except they never had them all in stock. Glad they didn't now since $4 ea is a lot better then $20
    • Report Post
  • NG
    • webshark wrote:
      Sep 10th, 2017 11:29 pm
      Walmart toys sections are horrible. Messy and no selection I always thought it was just my local wal-mart but they are all like that.
      Its every Walmart :( Even in the U.S. I've given up looking for toys there.
    • Report Post
    • GSXXRR wrote:
      Sep 9th, 2017 2:28 pm
      I think the main reason for Toys R Us demise, have more to do with kids not playing with traditional toys, more than anything.

      Just look at the local parks, they are empty after school and on weekends! 15-20years ago they would be packed.

      Kids now a days just want their iPads and Computers.
      As a parent of two kids, I can absolutely say that is a false misconception. Traditional toys (LEGO, Nerf guns, Barbies, etc.) are still the primary go-to toys, especially for the under-10 kids.

      As for parks and playgrounds, they are still busy as ever, at least in my neighborhood. Even when I went with my son during this summer, he's always bumped into a few of the other kids from his class (annoying because I have to make small talk with the other parent).

      Of course I'm not saying that the iPads are collecting dust, but even those games are a lot more engaging than what I got as a kid.
    • Report Post
    • I don't see why Toys R Us will even go bankrupt? I saw people line up in front of the cashier every time when I was there ...
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