Toys R Us has filed for bankruptcy protection, and that means some restructuring.
The iconic toy retailer said Monday it plans to restructure its long-term $5 billion debt and "establish a sustainable capital structure" that'll allow Toys R Us to "invest in long-term growth."
Such investments include improving its website and overhauling Babies R Us to focus more on items that are aren't typically bought on Amazon, like cribs instead of diapers, CNBC reports.
“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,” Dave Brandon, Chairman and Chief Executive Officer said in a statement.
The company says the “vast majority” of its 1,600 Toys R Us and Babies R Us stores globally are profitable, and they'll continue to operate "as usual." (Only the company's U.S. and Canadian stores are part of this bankruptcy protection filing.)
For more information on Toys R Us' restructuring plans, click here.
The story from Monday is below.
Toys R Us might be in trouble
Ah, the good ol' days – back in the late '80s and early '90s, when you could watch Nickelodeon while slurping through a Fruit by the Foot for hours on end.
And you'd see this commercial come on:
The mythical land of Toys R Us, reminding you that being a kid is great. You don't want to grow up.
Turns out, Toys R Us probably hasn't enjoyed growing up much either.
Toys R Us hasn't navigated the shift to online sales well, and is apparently super in debt – about $400 million for 2018, CNBC reported earlier this month.
The situation has even led toy makers to hold off on sending Toys R Us new shipments, worried the retailer might not be able to pay for the product, according to Bloomberg.
Toys R Us' exact plan isn't clear, but the restructuring that comes with bankruptcy (or heck, even just general struggles) usually leads to some store closures. Just ask Gap, or Gander Mountain, or Bebe, or RadioShack, or Gordmans, or Payless Shoesource.
Toys R Us has eight locations currently in Minnesota. Seven are in the Twin Cities suburbs, with the eighth in Rochester.
There are 880 Toys R Us and Babies R Us locations throughout the U.S., Puerto Rico and Guam.