Much of the retail industry has seen a significant decrease in sales at various locations over the past few years. The convenience of online shopping is one common reason given for this decline. Whether located in Louisiana or elsewhere in the country, many retailers are looking to Chapter 11 bankruptcy to help solve their financial problems. The well-known toy retailer Toys R Us has recently made the decision to file.
Reports state that Toys R Us has a total of $4.9 billion in debt. The business will also owe interest payments on a portion of that debt over the next couple years. The company’s CEO and Chairman said that by filing for bankruptcy, the company can finally address financial constraints that previously held it back. The company also believes that this move will allow it to ensure that the Toys R Us brand continues.
Toys R Us management intends to keep all of the stores open and ready for business. Interest from lenders has already been reported, though the approval of such will be up to the Bankruptcy Court. Representatives believe that once approved, the financing will immediately improve the company’s financial health.
By choosing to file Chapter 11 bankruptcy, Toys R Us will be given an opportunity to restructure its debts and receive financial flexibility to work on improving its stability. Any business owner interested in learning more about bankruptcy could consult an experienced Louisiana attorney. An attorney could aid in filing for bankruptcy as well as assist in any future related legal proceedings.
Source: cnbc.com, “Toys R Us files for Chapter 11 bankruptcy protection“, Lauren Hirsch, Sept. 19, 2017