Toys R Us Is Preparing For Bankruptcy, Possibly Before Christmas

With more than 1,600 stores worldwide, no one ever considered that Toys R Us was in jeopardy. From baby registries to toddler shopping sprees and children’s birthday parties, it feels like a stop into the giant toy store is inevitable for most parents.

So it comes as somewhat of a shock that the baby and toy retailer is in financial trouble. Sources says that Toys R Us could make the move into possible bankruptcy in the next few weeks after suppliers have tightened terms ahead of the holiday season.

Toys R Us has around $5 billion in debt and the company is working on a loan as part of its bankruptcy filing to assure vendors that they can pay for the toys stocking store shelves.

It’s no surprise that big box retailers are struggling because of the shift to online merchants like Amazon and Walmart. With more than a dozen significant retail bankruptcies this year, still no one was expecting it to come from the iconic toy store.

Penny-pinching parents are using online retailer’s Amazon Family service to save 20% off regular deliveries of diapers, along with other lucrative offers for baby supplies. Walmart is also leading the way in voice-activated shopping which aids parents with small children to shop easily, with their busy schedules.

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