Toys R Us files for Chapter 11 reorganization

MIAMI - SEPTEMBER 28: The Toys'R'Us sign is seen on the outside of a store on September 28, 2010 in Miami, Florida. Toys'R'Us announced today it will hire about 45,000 employees to help with the holiday season, a larger number than in previous holiday seasons. (Photo by Joe Raedle/Getty Images)

RICHMOND, Va. (AP) – Toys R Us, the pioneering big box toy retailer, has announced it has filed for Chapter 11 bankruptcy protection while continuing with normal business operations.

A statement by the Wayne, New Jersey-based company late Monday says it voluntarily is seeking relief in U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond – and that its Canadian subsidiary is seeking similar protection through a Canadian court.

Toys R Us says court-supervised proceedings will help restructure its outstanding debt and reorganize for long-term growth. The company says separate operations outside the U.S. and Canada, including more than 250 licensed stores and a joint venture partnership in Asia, are not part of the filings.

It emphasizes that its approximately 1,600 locations will remain open, that it will continue to work with suppliers and sell merchandise.

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