A Toys R Us store in Framingham, Massachusetts. The company has filed for bankruptcy. Adam Hunger/Reuters
A Toys R Us store in Framingham, Massachusetts. The company has filed for bankruptcy. Adam Hunger/Reuters
A Toys R Us store in Framingham, Massachusetts. The company has filed for bankruptcy. Adam Hunger/Reuters
A Toys R Us store in Framingham, Massachusetts. The company has filed for bankruptcy. Adam Hunger/Reuters

Toys 'R' Us files for bankruptcy


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Toys “R” Us hasfiled for bankruptcy as the retailer, loaded with debt in a buyout more than a decade ago, failed to keep consumers from abandoning its stores for the lower prices and convenience of online shopping.

The company filed Chapter 11 documents late Monday in US Bankruptcy Court in Richmond, Virginia. The chain secured US$3 billion in debtor-in-possession financing to stay open while it restructures, according to a company statement.

The bankruptcy filing is the latest blow to a bricks-and-mortar retail industry reeling from store closures, sluggish mall traffic and the threat of Amazon.com. More than a dozen major retailers have filed for creditor protection this year, including Payless, Gymboree and Perfumania, all of which are using the Chapter 11 process to close underperforming stores and expand online operations.

Much of the toy merchant’s debt is the legacy of a $7.5bn leveraged buyout in 2005 in which Bain Capital, KKR & Co and Vornado Realty Trust loaded the company with debt to take it private. Since then, the New Jersey-based chain has struggled to dig itself out.

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The chief executive David Brandon took over Toys “R” Us in 2015 and sought to make shopping there a more enjoyable experience. Last year, he set out a vision of kids “dragging their parents to our stores because they want to see what’s going on.”

The retailer introduced the “Hot Toy Finder,” which tells customers exactly where in their local store to find the items featured on its “Holiday Hot Toy List”. The chain, which has provided the annual list of the 50 hottest toys for 20 years, also offered price matching and free layaway.

While Mr Brandon made some progress reducing liabilities, he ultimately was unable to resuscitate the closely held chain’s fortunes. The company reported a net loss of $164 million in the quarter ended April 29, compared with $126m for the same period in the prior year. It hasn’t shown an annual profit since 2013.

The company sells toys and baby merchandise in more than 1,500 Toys “R” Us and Babies “R” Us locations worldwide and through websites including Toysrus.com and Babiesrus.com.

Charles Lazarus opened Children’s Bargain Town, a baby-furniture store, in Washington in 1948, according to the Toys “R” Us website. He added toys two years later and opened the first Toys “R” Us, modelled after self-service supermarkets, in 1957. Mr Lazarus stepped down as chairman and chief executive in 1994. Two years later, the first babies “R” Us opened.

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Winners

Best Men's Player of the Year: Kylian Mbappe (PSG)

Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)

TikTok Fans’ Player of the Year: Robert Lewandowski

Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)

Best Women's Player of the Year: Alexia Putellas (Barcelona)

Best Men's Club of the Year: Chelsea

Best Women's Club of the Year: Barcelona

Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)

Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)

Best Coach of the Year: Roberto Mancini (Italy)

Best National Team of the Year: Italy 

Best Agent of the Year: Federico Pastorello

Best Sporting Director of the Year: Txiki Begiristain (Manchester City)

Player Career Award: Ronaldinho

RESULTS

1.45pm: Handicap (TB) Dh80,000 (Dirt) 1,400m
Winners: Hyde Park, Royston Ffrench (jockey), Salem bin Ghadayer (trainer)

2.15pm: Conditions (TB) Dh100,000 (D) 1,400m
Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard

2.45pm: Conditions (TB) Dh100,000 (D) 1,200m
Winner: Hurry Up, Royston Ffrench, Salem bin Ghadayer.

3.15pm: Shadwell Jebel Ali Mile Group 3 (TB) Dh575,000 (D) 1,600m
Winner: Blown by Wind, Xavier Ziani, Salem bin Ghadayer

3.45pm: Handicap (TB) Dh72,000 (D) 1,600m
Winner: Mazagran, Tadhg O’Shea, Satish Seemar.

4.15pm: Handicap (TB) Dh64,000 (D) 1,950m
Winner: Obeyaan, Adrie de Vries, Mujeeb Rehman

4.45pm: Handicap (TB) Dh84,000 (D) 1,000m
Winner: Shanaghai City, Fabrice Veron, Rashed Bouresly.

Brief scores:

Toss: Sindhis, elected to field first

Pakhtoons 137-6 (10 ov)

Fletcher 68 not out; Cutting 2-14

Sindhis 129-8 (10 ov)

Perera 47; Sohail 2-18

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.