One of the biggest toy retailer companies has been struggling these past few months and has recently been reported to be in debt and have filed a Chapter 11 bankruptcy protection last Monday. The bankruptcy protection has been a surprise to its investors as crippling debt has crippled the toy making company, coupled with magnanimous debt reports.

The biggest toy maker in the United States is looking to join the likes of Kmart on having one of the biggest bankruptcies in the history of U.S. retailer. Investors were in shock after a clean record from the company, no imminent debt maturities, and they have been outperforming past stressful events.


Toys ‘R’ Us Debt Problems

Recent reports showed that the toy company has been making a total of $400 million in interest payments on its debt every year. The unimaginable interest payments were an offspring of the massive $6.6 billion leveraged buyout in 2005, and it all boiled down last Monday with the bankruptcy protection being filed.

On the other hand, the bankruptcy was also a massive loss of the company’s seven-month progress and effort to relieve the massive debt conundrum. According to the toy company’s creditors, The Wayne shows an unwillingness to tolerate them has been giving the negative impression from its investors and giving them a huge confidence gap.


Toys ‘R’ Us Possible Future

The next possible step for the toy maker’s possible future is going to be the downsizing of their physical stores and a total makeover on its extensive flagships stores. According to the company’s Chief Executive Officer David Brandon, the whole move on the shrinking markets may lead Toys ‘R’ Us back into the public markets.

Brandon’s whole plan to remove the company into the debt sinkhole they are in is dubbed as the “Project Sunrise”. The blueprint of “Project Sunrise” is the integration of a whole new online and in-store shopping experiences; this includes features such as faster and better shipment, and revamp of the company’s customer service.

More Plans and Decisions

One thing that the company has also gambled with is with its workers, along with the filing of bankruptcy, they also managed to increase the wages of its 64,000 workers. Toys ‘R’ Us is also looking to hire a secret amount of job during the holiday as a seasonal job opening; and a total of 12,000 part-time jobs in the United States alone.

The holidays’ will be the most vital season for the toy company and in return, they are looking to hire as many cashiers, sales associates, stock associates, and other staff that they can use. The biggest hiring bonanza is expected to be in New York, being followed by  Los Angeles, and finally in Ohio.

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