Toys 'R' Us Canada files for creditor protection.

Toys 'R' Us Canada has filed for creditor protection in Ontario as it seeks a court-supervised restructuring; its 22 stores remain open for now.

Toys 'R' Us Canada has filed for creditor protection in an Ontario court as it pursues a restructuring of the business. The company says inflation, higher labour costs, supply chain problems and the shift to e-commerce contributed to its financial difficulties. It previously closed stores and reduced staff but reports those steps did not restore stability. The retailer says its remaining stores remain open while it evaluates options. Key points: - The company filed for creditor protection and is seeking court-supervised restructuring. - Toys 'R' Us Canada reported it owes at least $120 million to suppliers and substantial amounts to landlords, and it currently operates 22 stores. - The company is expected to return to court to seek authorization for a liquidation sale and a structured sale or investment solicitation process. Summary: The creditor protection filing pauses most collection actions while the company pursues restructuring. The company is expected to return to court to seek approval for a liquidation sale and a structured sale or investment solicitation process.