EMERYVILLE (KPIX) — Retail giant Toys ‘R’ Us has filed for bankruptcy protection.

The company is $5 billion dollars in debt, stemming from its multi-billion dollar buyout in 2005.

The announcement comes just weeks before its fourth quarter holiday toy-shopping season, which accounts for 40% of net sales.

The store says it will continue to honor return policies, gift cards and customer loyalty programs.

Over the next four years, the store plans to spend $64.8 million to improve customers’ toy shopping experience.

Toys ‘R’ Us is the largest toy store chain in the United States. The company has 1,600 Toys ‘R’ Us and Babies ‘R’ Us stores around the world and employs some 64,000 workers.

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