Toys 'R' US has officially filed for bankruptcy protection in the United States and will soon do the same in Canada.
The beloved toy store filed for Chapter 11 documents on Monday evening in order to rectify a massive $400-million debt that has been built up over the course of 15 years. The debt, which is due in 2018, has already caused some of its vendors to cut back on shipments.
Toys 'R' Us experienced a dull 2016 holiday season. The decline in business could be due to a rapid shift in online retail - millennial parents, who were once the toy store's biggest customers, have now turned to other services like Amazon and eBay, despite Toys 'R' Us having its own online services as well.
The hope is that the filing will help assure Toys 'R' Us' major suppliers, such as Hasbro and Mattel, that the company is focused on a comeback. It has secured $3 billion U.S. in financing to stay open while it works on restructuring its debt.
Millennials on Twitter expressed their sadness over the news:
First they take our blockbuster...
Now they take our Toys R' Us...
Truly this is the worst timeline... pic.twitter.com/zKuPG2jAbw
I feel bad about Toys 'R' Us - but I also feel bad they don't really make toys anymore #WhereDidAllTheToysGo? pic.twitter.com/527WhSW3Ug
I am not going to lie I am really sad at the fact that @ToysRUs filed for bankruptcy. I use to get so excited as a little boy to go there.
Toys R Us is going bankrupt, Jess and Dom are engaged, Theresa May is our PM. WE ARE TRULY LIVING IN THE DARKEST TIMELINE
Thoughts go out to the staff at Toys R Us. Sad to hear it'll be going into bankruptcy. When I was a kid it was the best place to get toys
can we bring back bioncle and save toys r us
first blockbuster and now toys r us, just burn my childhood down to the ground
If Toys R Us seriously goes bankrupt, I think I'm gonna cry. That store was a huge part of me when I was younger & I don't wanna see it go.
Toys R Us about to go bankrupt...Amazon is literally killing everything lol
Forget buying anything. Just going to Toys R Us was one of my favorite activities as a kid.