Bankrupt Toys ‘R’ Us forced to grow up by new kid on the block e-commerce

(Sept 19): Toys “R” Us Inc. filed 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 ($4 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 brick-and-mortar retail industry reeling from store closures, sluggish mall traffic and the threat of Amazon.com Inc. More than a dozen major retailers have filed for creditor protection this year, including Payless Inc., Gymboree Corp. and Perfumania Holdings Inc., all of which are using the Chapter 11 process to close underperforming stores and expand online operations.

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