The Ontario Supreme Court has made the decision to grant Toys “R” Us Canada creditor protection. The toy company has struggled south of the border, and the problems experience by the larger Toys “R” Us toy chain, particularly in the United States, is mostly to blame.
The Canadian arm of the toy giant have been going strong for some time, but recently, Toys “R” Us in the United States filed bankruptcy. The Ontario Supreme Court granted Toys “R” Us Canada with creditor protection.
Court documents that were filed on Tuesday showed that the Canadian arm of the retailer giant has been performing extremely well over the past few years. However, the rest of the company has struggled, causing some suppliers to require deposits before they will ship, or require cash on delivery.
This is extremely important for the company as a whole because of the upcoming holiday season. Toys “R” Us Canada says that they will keep all 82 of their stores open throughout the country and announced that they have gotten new financing. Meanwhile, the rest of the company will be restructuring and trying to figure out the secret behind Toys “R” Us Canada’s success recently so that they can do the same.