Toys ‘R’ Us has officially filed for bankruptcy, with over $5 billion in debt. According to Forbes, the toy giant’s bankruptcy is the third-largest retail industry bankruptcy of all time, falling behind Kmart and Federated Dept. Stores, aka Macy’s.
With all of the advances in technology over the past couple of decades, it’s no secret that brick-and-mortar stores are feeling the impact. First came super stores with low prices like Walmart and Target, now you can get anything for a deal on Amazon.
The news comes just in time for holiday shopping, but the good news is that Toys ‘R’ Us has made no announcement concerning the closing of stores. BND News says that the Chapter 11 bankruptcy lets the company restructure about their debt, which has been “overleveraged” since 2005, when it went private in a buyout.