Toys”R”Us files for Chapter 11 Bankruptcy

The first thing I have to say is don’t panic Nerd Nation. When I first read the news about Toys”R”Us filing for bankruptcy, I about lost my sh*t. Ever since I was a kid I have always loved going into Toys”R”Us stores and now having kids I love it even more. I’ve seen a lot of sights posting that Toys”R”Us stores will be closing their doors, but that is NOT true. At least not yet anyways. Had they filed chapter 7 bankruptcy then we would definitely be kissing their stores goodbye right now. Thankfully the toy store giant has filed for chapter 11 bankruptcy and the hope is that they will come out of this with a lot less debt, and once again be competitive in the ever changing retail market.

“Together with our investors, our objective is to work with our debtholders 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, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide. We are confident that these are the right steps to ensure that the iconic Toys“R”Us and Babies“R”Us brands live on for many generations.” -Toys”R”Us CEO Dave Brandon

Of course this does not mean that they are completely out of the woods by any means. There is still a very real chance that this could fail and Toys”R”Us will be forced to liquidate all of their assets and dissolve the company. However, as of right now they still plan to keep their doors open and are currently getting ready for the big holiday shopping season. In fact, there is already some good news for the iconic toy store. A commitment of $3 billion in financing from both their lenders and investors has already been made to the retail giant to help keep things going through this process. Hopefully the iconic toy retailer will be able to bounce back from this and stick around for another 60 plus years.

Click here if you would like to read the entire Toys”R”Us press release and as always, let us know what you think about this Nerd Nation. Are you glad to hear that the iconic toy store from our childhood is staying open, and what types of changes do you think they could make to ensure their survival in the modern retail marketplace? Be sure to let us know your thoughts on this by leaving them in a comment below, on the Facebook page, or hit us up on the Twitter page @Nerdgasmneeds.

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