Major toy store files for bankruptcy just as it gears up for Christmas

The latest victim.

Toys R Us has filed for bankruptcy. The toy store has become the latest victim in the world of online shopping and discount stores, as it has raked up a $5billion (€4.17bn) debt. According to the New York Post, it's the biggest speciality retailer to be hit in recent years, and filed for Chapter 11 bankruptcy yesterday afternoon. The company has approximately 1,600 stores and 64,000 employees, however their future job security remains in doubt. However, the debt is only coming from the US and Canadian stores, and the company announced that UK stores have not been affected. The chairman of the company said: “Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5bn of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business. "[We will] continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.” The filing comes just as the retailer sets up for Christmas sales.