Toys “R” Us Canada has filed for creditor protection, following in the footsteps of its American counterpart. The iconic toy retailer announced on Tuesday that it has obtained an initial order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA).
This move comes after the company’s U.S. division filed for bankruptcy protection in September 2017, which resulted in the closure of all its stores in the United States. However, the Canadian division remained open and continued to operate independently.
According to the company, the decision to seek creditor protection was made in order to facilitate a restructuring process and allow for a potential sale of its Canadian operations. Toys “R” Us Canada has stated that it will continue to operate its 82 stores across the country, as well as its e-commerce business, during this process.
In a statement, the company’s president, Melanie Teed-Murch, reassured customers that it will be business as usual for the time being. “We want to assure our customers that we remain open for business and our stores are fully stocked with the hottest toys and games for the holiday season,” she said.
Toys “R” Us Canada has also stated that it will continue to honour all gift cards, warranties, and returns during this process. The company has also assured its employees that their jobs are secure and that they will continue to receive their wages and benefits.
The decision to seek creditor protection was made after the company faced financial challenges due to changing consumer habits and increased competition from online retailers. Toys “R” Us Canada has been in operation for 34 years and has become a beloved destination for families looking for the latest and greatest toys.
The company has stated that it is committed to finding a solution that will allow it to continue serving its loyal customers and providing a fun and memorable shopping experience. It has also expressed gratitude to its employees, customers, and suppliers for their ongoing support during this challenging time.
Toys “R” Us Canada will provide updates on its restructuring process as they become available. In the meantime, the company remains open for business and encourages customers to continue shopping for their holiday gifts at their stores or online.
