Toys “R” Us bankruptcy protection is not about “store closures or staff reductions,” but rather a “proactive step”

Toys “R” Us Canada sought creditor protection largely due to the financial woes of its U.S. parent company, which filed for bankruptcy.

Toys “R” Us Inc will shrink its stores and revamp its bigger outlets through its bankruptcy process, which may end with the company’s return to the public markets, Chief Executive David Brandon has said.

Toys “R” Us, the largest specialty US toy seller, filed for bankruptcy  after some of its vendors stopped shipping to them. They were concerned the company would not pay them because of its financial distress, but those worries were put to rest once Toys “R” Us secured bankruptcy financing.

Brandon, in detailing Toys “R” Us’ turnaround, dubbed “Project Sunrise” by the company, said the chain will integrate its online and in-store shopping experiences, adding faster shipping and better technology and customer service. He said the chain’s 64,000 workers would see wage increases too.

When asked about possible layoffs, Toys “R” Us clarified that the bankruptcy protection isn’t about “store closures or staff reductions,” but rather a “proactive step” to improve the business.