Toys R Us seeks Chapter 11 bankruptcy | The Colpitts Law Firm
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Toys R Us seeks Chapter 11 bankruptcy

For many businesses in Oklahoma and across the country, there often comes a time when important decisions must be made in order to ensure long-term success. For example, a company struggling with debt may have to seek Chapter 11 bankruptcy protection in order to better manage its debt. Toys R Us has recently taken such action to help it in terms of future success and financial security.

Part of the decision to seek bankruptcy protection was based on significant debt that is left over from a 2005 acquisition deal. Currently the company is carrying $4.9 billion in debt -- an amount that has a significant amount of interest due in the next two years. Representatives for the company claim that the operations of its approximately 1,600 stores will not be impacted by the recent filing.

Although awaiting court approval, the company has already received offers for debtor-in-possession financing. These proceedings, including the additional financing, are expected to help the company in various ways, including allowing it to improve its website. Additionally, the company is hoping that it can focus on items that many consumers choose to purchase at a store rather than online.

Representatives for Toys R Us seem excited about the company's future following the decision to file for Chapter 11 bankruptcy. Additionally, companies such as Mattel and Hasbro, which are vendors for Toys R Us, now have more clarity regarding its long term plans, which is especially important due to the impending holiday season. For companies in Oklahoma who are contemplating similar action, an attorney with experience with bankruptcy proceedings can help them choose the most appropriate course of action.

Source: CNBC, "Toys R Us files for Chapter 11 bankruptcy protection", Lauren Hirsch, Sept. 19, 2017

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