Toy giant Toys R Us has filed for bankruptcy protection in the United States and Canada as the retailer struggles under its heavy debt load and a shift towards online shopping.
The retailer said it was beginning a court-supervised process that allows it to restructure its finances while remaining open for business, the Telegraph reports.
It said operations in Europe, Asia and Australia are not included in the Chapter 11 filing, which is often referred to as a “reorganisation” bankruptcy.
Toys R Us has a debt pile of more than £3.5bn, which is largely a result of a leveraged buyout in 2005, when it was taken private by Bain Capital, KKR, and Vornado Realty Trust.
The company has around 1,600 stores worldwide, employing more than 60,000 staff.
“We are confident that we are taking the right steps to ensure that the iconic Toys R Us and Babies R Us brands live on for many generations,” said chief executive Dave Brandon.
“Our customers around the world can continue to count on an outstanding shopping experience and excellent service whenever, wherever and however they choose to shop with us.
“As the holiday season approaches, our global team members are ready to serve the millions of kids and families who will be shopping with us.”
