Is major toy retailer, Toys R Us looking into filing bankruptcy?
Toys R Us has hired restructuring lawyers at the international law firm, Kirkland & Ellis to help restructure its roughly $400 million in debt due next year, a move that could include filing for bankruptcy protection, sources told CNBC.
Although that doesn’t necessarily mean the toy company will definitely file for bankruptcy. A CNBC report noted that just because the New Jersey company hired restructuring lawyers does not mean bankruptcy filing is a definite, as many companies work with law firms to refinance or restructure debt without filing for protection.
The company had previously announced it was working to address its debt load, and it successfully refinanced some of its debt just a year ago, the CNBC report said.
Toys R Us and Babies R Us have several stores in central Pennsylvania, and apparently the latest developments aren’t stopping the toy chain from opening new locations. Toys R Us Express recently opened a new store in the new expansion at Tanger Outlets Lancaster. And Real estate company, Metro Commercial recently announced that Toys R Us signed a lease at the Colonial Commons shopping center in the former OfficeMax space. That space is currently being leased temporarily by a Spirit Halloween store.