Toys R Us filed for bankruptcy earlier this week, a wicked head-shot to a retail sector that’s been reeling for months.
The TRU filing ranks as the second-largest US retail bankruptcy ever, according to S&P Global Market Intelligence.
Toys R Us had $6.6 billion in assets at the time of filing. Only Kmart was bigger. It had $16.3 billion in assets when it went bankrupt in 2002. Crushing debt pulled the giant toy seller under. According to a Bloomberg report, the company has piled up more than $5 billion in debt. Toys R Us reportedly pays more than $400 million a year on debt service alone.
The company says it plans to continue operating and secured a$3.1 billion operating loan to stabilize operations.
This is the biggest and perhaps most visible retail bankruptcy of the year, but Toys R Us is far from alone. To say the retail sector is struggling would be an understatement of epic proportions. Bloomberg summed up the retail landscape pretty succinctly.
This post was published at Schiffgold on SEPTEMBER 21, 2017.
Follow on Twitter
Recent Comments