Toys R Us may file for bankruptcy before the holidays: Report

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By Zlati Meyer, USA TODAY, TEGNA

The holiday season is the most important time of the year for toy stores, but Toys R Us could spend it in bankruptcy.

The toy giant might file for Chapter 11 in U.S. Bankruptcy Court in Richmond, Va., sometime before then — and as soon as the next several weeks — according to the Wall Street Journal.

The report cited sources saying the Wayne, N.J., chain’s suppliers are behind this, because they’re doing things like not shipping new items until Toys R Us can pay cash for them right away. The company, which garnered 40% of its $11.5 billion in revenues in the quarter that includes the holidays, has most of its merchandise for the season, but refreshing stock could prove problematic.

Toys R Us declined to comment.

The holiday season is an annual bonanza for toy sellers, as millions of parents and others with children in their lives spend billions on gifts.

Toys R Us was $5 billion in debt, as of April 29.

Read more at http://www.11alive.com/news/nation-world/toys-r-us-may-file-for-bankruptcy-before-the-holidays-report/476704179?utm_campaign=trueAnthem:+Trending+Content&utm_content=59c0168604d3013bfca70c1d&utm_medium=trueAnthem&utm_source=twitter

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