The largest chain of toy stores in the US declared bankruptcy
The largest American chain of toy stores Toys ‘R’ Us filed a petition in the court for voluntary bankruptcy to restructure debt.
The bankruptcy procedure will affect only the division of the company in the United States and Canada. In Toys ‘R’ Us stated that most of the company’s stores around the world have remained profitable and will continue to work as usual.
Toys ‘R’ Us was previously a dominant player in the toy market in the United States, but began to struggle when she had to compete with online retailers like Amazon.
“Bankruptcy is another proof that traditional retailers have entered in a tough battle in the United States as Internet retailers continue to capture market share”, – writes the edition.
GlobalData estimates that Retail, in 2016, about 13.7% of all toy sales were made online, while five years ago only 6.5 per cent.
Debt Toys ‘R’ Us is $5 billion. a Significant part of the debt was formed after the repurchase of shares of the company in 2005, the Company has agreed to allocate $3 billion from various investors to cover part of the debt.
Toys ‘R’ Us was founded in 1948, has around 1600 stores worldwide. Workforce – more than 64 thousand employees. The company’s sales in 2016 reached $11.5 billion.
Earlier, the European Commission allowed the German government to allocate airline Air Berlin, in mid-August announced its insolvency, the state loan of 150 million euros.
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