Toys “R” Us Inc., which has struggled to lift its fortunes since a buyout loaded it with debt more than a decade ago, is preparing a Chapter 11 filing as soon as today, according to people familiar with the situation.
The move would send America’s largest toy chain to Bankruptcy court, dealing another blow to a brick-and-mortar industry that’s already reeling from store closures, sluggish mall traffic and the threat of Amazon.com Inc.
The toy retailer has already hired a claims agent, which typically helps with administering a Chapter 11 process, people with knowledge of the situation said last week.
Shares of Mattel Inc. , the maker of Barbie and Fisher-Price, fell 6.2 percent -- its worst decline in seven weeks.
Hasbro, the company behind Monopoly, Nerf and Transformers, dropped 1.7 percent, marking its biggest decrease in almost two weeks.
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- Toys R Us bonds tumble to record lows on bankruptcy reportsFinancial Times
- Why Shares of Mattel Slumped TodayMotley Fool