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UPDATE 1-Toys 'R' Us preparing for possible bankruptcy filing -sources

UPDATE 1-Toys 'R' Us preparing for possible bankruptcy filing -sources
From Reuters - September 15, 2017

(Recasts with own sourcing)

By Jessica DiNapoli

Sept 15 (Reuters) - Toys R Us is working to put together a loan to fund its operations in a potential bankruptcy filing that could come before the holiday sales season, according to people familiar with the matter.

The toy merchants move underscores the deep distress rippling through retailers of all sizes as consumers increasingly shop online at sellers such as Amazon.com Inc or go to discounters such as Wal-Mart Stores Inc .

A spokeswoman for Toys R Us did not immediately respond to a request for comment. The people could not be identified because the bankruptcy plans are not yet public.

The Wall Street Journal earlier reported that the company was considering filing for Chapter 11 protection in U.S. Bankruptcy Court in Richmond, Virginia. (on.wsj.com/2h87WOt)

There have been more than a dozen significant retail bankruptcies this year, but none for retailers as big as Toys R Us, which has about $5 billion in debt and more than 1,600 stores worldwide.

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