Toys R Us files for bankruptcy as retailers prepare for the holiday season

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WAYNE, N.J. (WOLO) –

It’s not all fun and games for Toys R Us. The retailer is filing for bankruptcy protection. In a statement released Monday, company officials say it will use the proceedings to deal with $5 billion worth of debt. Despite the announcement, Toys R Us stores will stay open world-wide. According to the Associated Press, the New Jersey-based company says it is voluntarily seeking relief in the U.S. Bankruptcy for the Eastern District of Virginia in Richmond. The toy retailers’ Canadian subsidiary is also seeking similar protection through a Canadian court. The Chapter 11 filling for bankruptcy protection comes as retailers prepare for the holiday season.