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Toys 'R' Us Joins Chapter 11 Parade

In court documents, the toy retailer cited more than $5 billion of debt along with "unrelenting" competition from warehouse and online channels.

By Paul Bubny | paulbubny | Updated on September 19, 2017

Exterior of retail store A Toys “R” Us storefront. The retailer, founded in 1957, operates more than 1,600 locations worldwide.

RICHMOND, VA—Toys “R” Us Inc. on Tuesday sought court approval for debtor in possession financing at US Bankruptcy Court for the Eastern District of Virginia here. The toy retailer filed for Chapter 11 protection Monday night, the latest of several chains to go that route in 2017.

The Wayne, NJ-based company said Monday evening it had received a commitment for $3 billion in DIP financing from lenders that include a JPMorgan-led bank syndicate and some of the company’s existing lenders. Toys “R” Us was taken private in 2005 by a group that included Bain Capital, KKR and Vornado Realty Trust; the REIT continues to hold a 32.5% stake, although it neither holds nor guarantees any of the retailer’s debt.

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