VIDEO: Toys “R” Us files for bankruptcy

 

SAN FRANCISCO (KELO/KRON) — Toys “R” Us has filed for bankruptcy on Monday night.

The retailer is reportedly about $5 billion in debt and has lost $164 million just in the first half of this year.

Toys “R” Us has more than a dozen locations in the Bay Area. At this point, the fate of those stores is still unknown.

Earlier Monday, both the Wall Street Journal and CNBC cited sources that claimed that Toys “R” Us could file as soon as the next few weeks, short of the critical holiday shopping season.

Earnings reports show that Toy “R” US has been losing money by the millions.

The chain has two stores in South Dakota (Rapid City, Sioux Falls) and more than 800 locations across the country.

If filed, Toys “R” Us would take the first step on a path similar to other former competitors that it eventually acquired.

KB Toys went through a second bankruptcy before its name was sold to Toys “R” US in 2009.

Months later, FAO Schwarz was also absorbed after a second bankruptcy.

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