--- description: Toys 'R' Us filed for Chapter 11 bankruptcy late Monday as a result of long-term debt and a struggling retail landscape title: No, Toys 'R' Us Isn't Closing All Its Stores After Filing for Bankruptcy image: https://static.time.com/v3/assets/bltea6093859af6183b/blt886306c0a942f9f3/6988de5d4ee262333f30f0d5/gettyimages-849154758.jpg?branch=production&width=1440&quality=75&auto=webp&crop=16:9 ---  * [Business](/section/business/) ## Business Update your preferences in [Account Settings](/account/preferences/) Close # No, Toys 'R' Us Isn't Closing All Its Stores After Filing for Bankruptcy by [Jennifer Calfas](/author/jennifer-calfas/) ## Jennifer Calfas Update your preferences in [Account Settings](/account/preferences/) Close Sep 19, 2017 1:12 PM CUT  Shopping carts stand outside a Toys R Us Inc. retail store in Louisville, Kentucky, U.S., on Monday, Sept. 18, 2017\. Toys R Us Inc., which has struggled to lift its fortunes since a buyout loaded the retailer with debt more than a decade ago, is preparing a bankruptcy filing as soon as today, according to people familiar with the situation. Shopping carts stand outside a Toys R Us Inc. retail store in Louisville, Kentucky, U.S., on Monday, Sept. 18, 2017\. Toys R Us Inc., which has struggled to lift its fortunes since a buyout loaded the retailer with debt more than a decade ago, is preparing a bankruptcy filing as soon as today, according to people familiar with the situation.Luke Sharrett/Bloomberg via Getty Images by [Jennifer Calfas](/author/jennifer-calfas/) ## Jennifer Calfas Update your preferences in [Account Settings](/account/preferences/) Close Sep 19, 2017 1:12 PM CUT Toys ‘R’ Us filed for bankruptcy protection late Monday in a move that echoes a larger challenge faced by brick-and-mortar retailers. But filing for bankruptcy — particularly Chapter 11 bankruptcy, in the case of Toys ‘R’ Us — does not mean the largest toy store chain the U.S. is now going out of business. By filing for Chapter 11 bankruptcy, Toys ‘R’ Us is aiming to relieve itself of billions of dollars of debt and restructure its financial model and customer experience in order to keep its business alive. “Today marks the dawn of a new era at Toys”R”Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” said Dave Brandon, the company’s chairman and CEO, in a statement. Indeed, the company says its 1,600 Toys ‘R’ Us and Babies ‘R’ Us stores around the world and websites selling its products will still operate as usual. [Chapter 11 bankruptcy](http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics "undefined") is typically filed by businesses with the hopes of restructuring and reorganizing to not only reduce its debt but also lessen its expenses. Toys ‘R’ Us filed for bankruptcy protection voluntarily in a federal court in Richmond, Va. Its stores in Canada will also seek bankruptcy protection through the country’s court system, but the 225 stores outside of the U.S. and Canada are not part of the filings. Toys ‘R’ Us still faces a tough road ahead as it faces competition from giants like Amazon and Walmart, which have adapted to the changing retail landscape. The company has received $3 billion from previous lenders and a JPMorgan-led bank syndicate that will help “immediately improve” the businesses’s financial issues and operations, according to Toys ‘R’ Us. “We are confident that these are the right steps to ensure that the iconic Toys”R”Us and Babies”R”Us brands live on for many generations,” Brandon said. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/4947682/toys-r-us-chapter-11-bankruptcy/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/4947682/toys-r-us-chapter-11-bankruptcy/"},"headline":"No, Toys 'R' Us Isn't Closing All Its Stores After Filing for Bankruptcy","datePublished":"2017-09-19T13:12:51.000Z","dateModified":"2026-02-23T17:29:21.912Z","description":"The toy store chain is hoping to reorganize its finanical structure and lessen its debt","url":"https://time.com/4947682/toys-r-us-chapter-11-bankruptcy/","keywords":["toys r us","onetime"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt886306c0a942f9f3/6988de5d4ee262333f30f0d5/gettyimages-849154758.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Jennifer Calfas","jobTitle":null,"url":"https://time.com/author/jennifer-calfas/"}],"articleSection":"Business","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt886306c0a942f9f3/6988de5d4ee262333f30f0d5/gettyimages-849154758.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"Toys R Us Is Said To File For Bankruptcy","caption":"Toys R Us Is Said To File For Bankruptcy","creditText":"Luke Sharrett/Bloomberg via Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/business/","name":"Business"}},{"@type":"ListItem","position":2,"item":{"@id":"https://time.com/4947682/toys-r-us-chapter-11-bankruptcy/","name":"No, Toys 'R' Us Isn't Closing All Its Stores After Filing for Bankruptcy"}}]}] ```