20 September, 2017
The toy seller is also seeking protection for its Canadian subsidiary.
Once the dominant player in the United States toy market, the company has struggled with $5bn of long term debt as it faced rising competition from rivals such as Amazon, Walmart and Target.
Operations outside the USA and Canada, "including its approximately 255 licensed stores and joint venture partnership in Asia", are not part of the bankruptcy proceedings, the company said in a statement late on Monday.
Toys R Us has hired lawyers at Kirkland & Ellis to help restructure the $400 million debt it will have to repay in 2018, according to the report.More news: Minn. rural electric cooperatives assist Florida recovery
"We are confident that these are the right steps to ensure that the iconic Toys "R" Us and Babies "R" Us brands live on for many generations", company CEO Dave Brandon said in a statement.
The filing is created to give the company time to get its financial house in order by restructuring its $5 billion debt and ensure there is enough money for continued operations. Loyalty programs-including Rewards "R" Us, Geoffrey's Birthday List and Babies "R" Us Registry-are also expected to continue as normal.
Toys "R" Us is the second-largest toy seller in the USA behind Amazon, according to consulting firm Kloster Trading Corp.
Most of its 1,600 stores across the world are profitable, and only those in North America are a part of these court filings, it said.
The US mother company said it received a commitment for over US$3 billion in debtor-in-possession financing from lenders including a JPMorgan-led bank syndicate and certain existing lenders.