Metro-East News

Toys R Us files bankruptcy; stores remaining open so far

Toys R Us is delcaring bankruptcy, but as of now, it will have no effect on the Fairview Heights store.
Toys R Us is delcaring bankruptcy, but as of now, it will have no effect on the Fairview Heights store. AP

Toys R Us is declaring bankruptcy in order to better invest in its long-term growth, the company says.

Short-term, that means stores will continue to operate as usual. The retailer has made no announcement about closing stores or inventory reduction. Toys R Us and Babies R Us have stores in Fairview Heights.

The Chapter 11 bankruptcy allows the company to restructure about $5 billion in debt. Forbes reports the company has been “overleveraged” since 2005, when it went private in a buyout.

This story was originally published September 20, 2017 at 10:43 AM with the headline "Toys R Us files bankruptcy; stores remaining open so far."

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