In a statement on its website, the toy company said it had filed for relief under Chapter 11 of the Bankruptcy Code in the US and intended to seek protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada.

“Operations outside the US and Canada are not included in proceedings,” it said.

“The company’s approximately 1,600 Toys ‘R’ Us and Babies ‘R’ Us stores around the world – the vast majority of which are profitable – are continuing to operate as usual.

Adding that customers could carry on shopping at its web stores, it said loyalty programmes including its Rewards ‘R’ Us, Geoffrey’s Birthday List and Babies ‘R’ Us registry would continue as normal.

Earlier today, Toys ‘R’ Us Inc, the largest US toy store chain, filed for bankruptcy protection in what Reuters called the latest sign of turmoil in the retail industry that is caught in a viselike grip of online shopping and discount chains.

The filing casts doubt over the future of the company’s 1,600 stores and 64,000 employees.

The company’s operations outside the US and Canada include about 255 licensed stores and joint partnerships in Asia, which are separate entities.

With assets of US$6.9 billion based on its most recent annual report, this is the second-largest retail bankruptcy, trailing the filing in 2002 by Kmart, which had US$14.6 billion in assets, according to research firm Bankruptcydata.com.

Toys ‘R’ Us is the second-largest toy seller in the US behind Amazon, according to consulting firm Kloster Trading Corp.