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.