Toys 'R' Us has officially filed for bankruptcy protection in the US with experts describing it as one of the 'largest ever' Chapter 11 filings by a speciality retailer.
Approximately 1,600 outlets and 64,000 employees have been put at risk by the move.
"We expect that the financial constraints that have held us back will be addressed in a lasting and effective way," Chief Executive Dave Brandon said in a statement.
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"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."
The good news for Brits is that operations outside of the US and Canada operate as separate entities, so are not part of the proceedings, meaning shops will remain open.
"Like any retailer, decisions about any future store closings - and openings - will continue to be made based on what makes the best sense for the business," Michael Freitag, a spokesman for Toys "R" Us, told Bloomberg.
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Here's how Twitter reacted to the news:
Reports from Reuters claim Toys 'R' Us is working on a loan as part of the bankruptcy filing to reassure its vendors it is able to keep all the toys on the shelves.
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The move is part of a greater trend which has seen many high street retailer's profits fall, as it fights off competition from online giants such as Amazon.
