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But for the first half of 2017, sales rose 3 per cent.

That puts more pressure on the later part of the year, when most toy sales occur, for the industry to meet NPD’s estimate for a 4.5 per cent annual increase.

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But it intends to make the best of the situation and reorganize in time to come back in force for the holiday shopping season.“Chapter 11 was certainly not the company’s preferred outcome,” Brandon said in a the court filing.Toys “R” Us said it expects to continue honouring return policies, warranties and gift cards, and customer loyalty programs should stay the same.In a separate statement late Monday, the company said its online sales sites worldwide remain open for business during the court-supervised process.“The timing of all of this could not have been worse.” He cited the immediate need to build inventory for the holiday season, which accounts for 40 per cent of annual revenue. The Toys “R” Us bankruptcy filing joins a list of at least 18 others since the beginning of the year — including shoe chain Payless Shoe Source, children’s clothing chain Gymboree Corp.and the True Religion jean brand — as people shop less in stores and more online.

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