Toys “R” Us and certain of its U.S. subsidiaries and its Canadian subsidiary have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, VA.

The company has received a commitment for more than $3 billion in debtor-in-possession (DIP) financing from various lenders, including a JPMorgan-led bank syndicate and certain of the company’s existing lenders, which, subject to court approval, is expected to immediately improve the company’s financial health and support its ongoing operations during the court-supervised process.

According to Bloomberg, the impact of the Chapter 11 filing is reverberating across the toy industry in both the U.S. and China as the holiday season approaches. The company has received letters of support from Mattel and other toymakers.

The company’s Canadian subsidiary today intends to seek protection in parallel proceedings under the companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice. The company intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents.

The company’s operations outside of the U.S. and Canada, including its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings.

“Today marks the dawn of a new era at Toys“ R” Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” said Dave Brandon, chairman and CEO.