FAIRFIELD COUNTY, Conn. – Toys R Us, the retail giant that has multiple locations in Fairfield County, filed for Chapter 11 bankruptcy Monday due to a crushing debt.
Toys R Us officials said they don't have immediate plans to close any of its 1,600 stores, but plans could change during this period of reorganization, Newsweek reported.
While all stores will remain operational, customers with gift cards should double check card balances and make sure gift cards will still be honored indefinitely. Shelly Hunter of Giftcards.com recommends using gift cards from any company in financial trouble as soon as possible.
“Our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position," said Dave Brandon, Chairman and Chief Executive Officer. "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.”
Toys R Us was purchased for $6.6 billion in 2005 by Kohlberg Kravis Roberts, Bain Capital and Vornado Realty Trust. Since that time, the brick and mortar retailer has struggled to keep pace with online outlets such as Amazon, Newsweek said.
Fairfield County's Toys R Us and Babies R Us locations are at:
- 19 Backus Ave, Danbury
- 59 Connecticut Ave., Norwalk
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