Toys “R” Us Canada says the struggles of the wider toy chain have been impacting its strong Canadian business.
The toy retailer’s Canadian subsidiary was granted creditor protection in the Ontario Superior Court on Tuesday, one day after Toys “R” Us started bankruptcy proceedings south of the border.
Toys “R” Us Canada said in court documents filed Tuesday that the big-box retailer’s Canadian arm has achieved strong financial performance in recent years.
However, Toys “R” Us Canada says it is not immune to the broader toy chain’s woes, which has prompted some of its suppliers to require more safeguards such as deposits and cash on delivery.
The move for creditor protection on both sides of the border comes as retailers gear up for the crucial holiday shopping season.
Toys “R” Us Canada says it has secured new financing and all 82 of its stores across Canada as well as its e-commerce websites will remain open for business as the company restructures.