The company filed for Chapter 11 bankruptcy protection in the U.S. on September 18, 2017, and has also filed for bankruptcy protection in Canada (see Companies' Creditors Arrangement Act). It was announced on March 14, 2018, that all Toys "R" Us stores in the United Kingdom would close. The next day, it was announced that the U.S. operations of Toys "R" Us were, after 70 years, going out of business and selling all 735 locations in the U.S.
The bankruptcy of the chain in the United States has not affected various international operations, however, including Asia and Africa. Discussion then turned to the fate of the Canadian branches. The British and U.S. stores closed on April 24 and June 29, 2018, respectively. However, the company still exists as the owner of the international operations, with the exception of the Canadian stores, which continue to operate under new ownership. In early June 2018, the 80 store Toys "R" Us Canada franchise was bought by a new owner, Fairfax Financial Holdings Ltd, for $300 million and continues to operate normally.
The Australian wing of Toys "R" Us entered voluntary administration on May 22 and closed all of its stores on August 5, 2018.