Add Toys R Us to the list of retailers choking on a huge chunk a debt and looking for relief.
The retailer has hired a law firm, Kirkland & Ellis, specialized in restructurings such as Chapter 11 bankruptcy protection filings, to look at how to reorganize about $400 million in debt coming due next year, CNBC reported on Wednesday, citing several sources familiar with the matter.
I can't say this is much of a shocker...their entire business model has become irrelevant over the past few decades. Most of their stores are too large, outdated, and not located around newer retail centers. Not to mention the younger generation (ages 4+) doesn't really play with toys like they used to, leading to stores full of product that few customers want. I think Babies 'R Us does reasonably well, although they are definitely greatly overpriced.