Popular toy retailer Toys R Us is looking to potentially file for bankruptcy due to its massive debt.
MSNBC reports the company currently owes $5 billion, $400 million of which is due by next year. Toys R Us has hired law firm Kirkland & Ellis to help weigh restructuring options and deal with the debt, which can be anything from bankruptcy filing to possibly raising enough finances to cover the money owed.
"As we previously discussed on our first quarter earnings call, Toys R Us is evaluating a range of alternatives to address our 2018 debt maturities, which may include the possibility of obtaining additional financing," Toys R Us spokeswoman Amy von Walter said in a statement.
The retailer is already working with investment bank Lazard to address its debt load and there's still a chance Toys R Us could avoid filing for bankruptcy protection. The company will make an official announcement regarding how it'll deal with the debt on September 26 during its second-quarter earnings call.
Toys R Us was able to successfully refinance some of its debt last year, which gave the retailer more time to figure things out before facing billions in debt repayments.
Earlier this year, peripheral maker Mad Catz also had to file for bankruptcy.
Alex Gilyadov is a freelance writer for IGN. Be sure to check out his YouTube channel and follow him on Twitter.
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