Could Toys 'R' Us be filing for bankruptcy?

Danny Woods
September 19, 2017

The once-upon-a-time toy giant has seen much of its market share eroded by challengers like Target and WalMart as well as by the looming online presence of Amazon.

Toys R Us could be headed for bankruptcy before the holiday shopping season.

A Toys R Us bankruptcy would severely damage the toy industry, Reuters reported. They company is proud of the fact that they stock a broad selection of toys, but that has often meant they only kept a few of each item in any given story.

The loan, according to The Wall Street Journal, would reassure the vendors that it will be able to pay for the portion of orders the retailer still needs. But that has continued to be a problem.

The company has spent a lot of money on its brick-and-mortar stores.

The store is now the largest toy product customer in the world, ranking just ahead of Walmart and Target.

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Reorg Research said a bankruptcy filing could be made in Virginia as soon as Monday.

Toys tapped restructuring attorneys from Kirkland & Ellis LLP, CNBC reported this month.

The chain's trio of owners - private equity firms Kohlberg Kravis Roberts and Bain Capital Partners and real estate investors Vornado Realty Trust - bought the company in a deal worth $6.6 billion, taking it private.

Mattel (MAT) tumbled to the bottom of the S&P 500 today on reports that Toys R Us is considering filing for bankruptcy.

Doing so would give vendors like Mattel and Hasbro clarity as the holiday season approaches.

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