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The reorganization will focus on investment in marketing, technology, and an in-store experience that will help it compete in the new environment, Brandon said.

The bankruptcy filing estimated the company has more than billion in debt, which it pays around 0 million a year to service.“Toys “R” Us had little choice but to restructure and try to put itself on a firmer footing,” said Neil Saunders, managing director of Global Data Retail.

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Toys “R” Us has filed for bankruptcy protection in the United States and says it intends to follow suit in Canada.

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S., including some 255 stores in Asia, are separate entities and are not part of the Chapter 11 filing and CCAA proceedings.“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 chairman and CEO Dave Brandon in a statement.“Together with our investors, our objective is to work with our debtholders and other creditors to restructure the billion of long-term debt on our balance sheet.”Toys “R” Us is headquartered in Wayne, N. The company said the proceedings are a way for Toys “R” Us to work with its creditors on restructuring the debt beleaguering it.

But it intends to make the best of the situation and reorganize in time to come back in force for the holiday shopping season.“Chapter 11 was certainly not the company’s preferred outcome,” Brandon said in a the court filing.

“The timing of all of this could not have been worse.” He cited the immediate need to build inventory for the holiday season, which accounts for 40 per cent of annual revenue. The Toys “R” Us bankruptcy filing joins a list of at least 18 others since the beginning of the year — including shoe chain Payless Shoe Source, children’s clothing chain Gymboree Corp.

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