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.
