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Retail giant Toys 'R' Us has voluntarily filed for bankruptcy protection in the U.S. and Canada in an attempt to restructure its debt and secure its future.
The once-popular chain -- which sells all manner of toys, including video games and consoles -- used to be one of the biggest players in the retail space, but in recent years has come under financial pressure thanks to the dominance of online stores like Amazon.
Despite having 1600 stores around the world, the vast majority of which are reportedly profitable, the retailer has racked up around $5 billion in long-term debt.
Toys 'R' Us chairman and CEO Dave Brandon says the company's priority right now is to "ensure the iconic [...] brand lives on for many generations," by working with debtholders and creditors.
"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," commented Brandon.
"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.
"That 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."