Toys R Us could file for bankruptcy just weeks before the holiday shopping season

Posted at 2:41 PM, Sep 18, 2017
and last updated 2017-09-18 15:32:44-04

Reports indicate that Toys R Us could be the next retailer to file for bankruptcy.

The Wall Street Journal reports that the toy retailer could file for Chapter 11 bankruptcy in the next few weeks, just a few months out from the crucial holiday season.

According to the Journal, the chain's suppliers are hesitant to ship new items before putting money down. The company is facing a debt of $5 billion stemming from a leveraged buyout in 2005.

Toys R Us has already received most of its holiday shipments, but could soon be prevented from receiving any additional toys before the shopping season begins.

Toys R Us is just one of a number of retailers who have struggled as Americans have started doing more of their shopping online. Just this year, at least 18 major retailers have announced that they plan on closing a significant number of stores.

Read the Wall Street Journal's report here.

Alex Hider is a writer for the E.W. Scripps National Desk. Follow him on Twitter @alexhider.