According to a Wall Street Journal report, Toys ‘R’ Us could be going bankrupt very soon.
It may be within weeks that the toy store files for Chapter 11 bankruptcy protection in the U.S. The global toy retailer, which has 1,600 outlets, could be filing before Christmas.
It was CNBC that reported in early Septembet that the company had hired restructuring advisers from Kirkland & Ellis, a law fim. Toys ‘R’ Us had also said that it was working with Lazard, an investment bank, to help attempt refinancing.
The company is in debt of around $5 billion and $400 million is reported to be due in 2018.
According to Dave Brandon, “Overall weakness in the baby business, as well as slower growth in the toy category and very aggressive price discounting by our competitors were significant contributors to our disappointing results.”
The company just posted dismal quarterly results back in June.