NEW YORK, Sept. 19 (Xinhua) -- Toys ""R"" Us, the world's leading retailer dedicated to toy and baby products, filed for chapter 11 bankruptcy protection late Monday night due to a debt load and severe competition from online retailers.
Toys ""R"" Us intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents.
""Today marks the dawn of a new era at Toys 'R' Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,"" said Dave Brandon Carlos Boozer Bulls Jersey , Chairman and Chief Executive Officer, in a release regarding the filing.
Toys ""R"" Us has about five billion U.S. dollars of long-term debt on its balance sheet. Restructuring that debt would give Toys ""R"" Us the financial flexibility to invest and strengthen its competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.
The company has received a commitment for over three billion U.S. dollars in debtor-in-possession financing from various lenders, including a JP Morgan-led bank syndicate and certain of the Company's existing lenders.
The filing also showed another example of the relentless online-offline retail competition. E-commerce giants, such as Amazon, have always been peeping at the retail market Cameron Payne Bulls Jersey , and their aggressive pricing have been mounting pressure over brick-and-mortar retail industry.
Analysts said buyers have moved online over the years, as well as choosing home delivery, while discounters like Wal-Mart and Target have captured market share.
To compete with e-commerce giants, traditional retailers as Toys ""R"" Us would have needed to slash prices to stay on the track.
Toys ""R"" Us is committed to working with its vendors to help ensure that inventory levels
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23.08.2018 08:15
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