22nd Sep 2017
Toys “R” Us has successfully filed for bankruptcy protection as it attempts to restructure its debts.
The toy retailer has struggled in recent years as more of its customers turned to online retailers such as Amazon.
While it filed for protection in the US, the company has physical stores in Africa, Asia, Oceania and Europe, including 81 shops in the UK.
CEO and Chairman Dave Brandon said: “Today marks the dawn of a new era at Toys“R”Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way.
“Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.”
Research from The Institute of Customer Service has shown that for many businesses, improvements to both physical and online customer interaction points are incredibly important.
In the latest Customer Satisfaction Index, it was found that, while in person interactions still make up the majority of customer interactions (54.1%), , web interactions, perhaps unsurprisingly, continue to grow (32.3%, up 1.6% since 2016).
Brandon continued: “As the holiday season ramps up, our physical and web stores are open for business, and our team members around the world look forward to continuing to put huge smiles on children’s faces.
“We thank our vendors for their ongoing support through this important season and beyond. We also appreciate the strong support our investors have provided over time and the constructive role they are playing in this process that will allow us to create a brighter future for our company.
“And as importantly, we thank our team members in advance for their hard work and dedication to serving the millions of customers who will shop with us this holiday.”