Toy giants, Toys ‘R’ Us, have filed for bankruptcy protection in the United States and Canada in order to restructure the company’s debts.
Toys “R” Us which was one of the biggest companies in the United States toy market has witnessed in sales due to competition from top rivals like Amazon.
This move has raised doubts about the company’s future as its over 64,000 employees now face an uncertain future.
However, the bankruptcy judge in charge of the case has approved a loan of up to $2bn to keep the company in business.
The aim of the loan is to give the company the needed funds to be able to cater for demands during the Christmas season.
The company’s European base was not added as part of the bankruptcy case as the company revealed that the stores in other parts of Europe are safe.
Not Child’s Play
The filing of the bankruptcy claim is clear evidence that traditional retailing companies in the United States are having a hard time competing with online retail stores who continue to dominate the market.
Toys ‘R’ Us also revealed that a large part of its stores all around the world continues to remain profitable so they would keep on operating those store all through the holiday period which is when they get most of their sales in.