Is The Toys R Us In Portage Closing?
Toys R Us filed for bankruptcy Monday. What does that mean for their Portage location?
Toys R Us is in massive debt. They owe almost 5 billion dollars. It's safe to say amazon and ebay has a lot to do with that. Will this chapter 11 bankruptcy protect the retail giant from dying a fast death? We've already lost multiple sporting good chains in West Michigan.
According to CNBC,
The company said it will continue to operate as usual its approximately 1,600 Toy R Us and Babies R Us stores around the world. The company's operations outside of the U.S. and Canada are not part of the protections proceedings, it said.
The retailer said that it has already received a commitment from some lenders, including a JPMorgan-led syndicate, for over $3 billion in debtor-in-possession financing. Although that's subject to court approval, Toys R Us said it "is expected to immediately improve the Company's financial health and support its ongoing operations during the court-supervised process."
Restructuring that debt would give Toys R Us the financial flexibility to continue its turnaround. Initiatives include improving its website and revamping its Babies R Us business, by focusing on items like cribs that are less likely than diapers to be sold on Amazon.
The word "restructuring" can be a scary one for any large company. There are no plans to layoff workers or close stores that we know of. If that type of restructuring happens we may not see that til sometime in 2018. However, we've written this story before. It ended with an empty building.