UK stores unaffected as Toys'R'Us files for bankruptcy protection in the US and Canada

But the firm's European operations are not part of the bankruptcy proceedings and Toys R Us says it does not expect any immediate impact on its 110 UK stores, including its branches at the Birchley Island in Oldbury and at Merry Hill.

The group, which has around 1,600 stores worldwide and 64,000 employees, said its stores outside of the US and Canada – including around 255 licensed stores and a joint venture in Asia – were not included in the so-called Chapter 11 filing.

Toys'R'Us said its stores – "the vast majority of which are profitable" – would operate "as usual" while it looks to restructure a £3.6 billion debt mountain.

The New Jersey-based chain has secured more than £2.2 billion in financing from a syndicate of lenders to help keep its stores open.

It comes ahead of the all-important Christmas season, which makes up around 40 per cent of the group's annual sales.

The filing is the latest example of turmoil in the retail industry as the shift online takes its toll on established players.

Dave Brandon, chairman and chief executive of Toys'R'Us, said: "We are confident that we are taking the right steps to ensure that the iconic Toys'R'Us and Babies'R'Us brands live on for many generations."

He added: "As the holiday season approaches, our global team members are ready to serve the millions of kids and families who will be shopping with us."

The private equity-owned company sought to assure that it will be working to ensure it is fully stocked and that products are delivered on time.

Toys'R'Us has suffered falling like-for-like sales for three quarters in a row and reported a quarterly net loss of £121 million on sales of £1.6 billion in June.

The toy company's woes have been partly blamed on the rise of Amazon and other online rivals.

E-commerce expert David Jinks, from delivery firm ParcelHero, said: "Toys R Us same-store sales have fallen for three consecutive quarters, and its most recent results were down 4.1 per cent. That’s because Toys R Us is in direct competition with online toy sales from the likes of Amazon; and when it comes to the toy market, Amazon isn’t playing around."

"In the snakes and ladders world of retail UK toy shops have been one of the hardest-hit store types of the internet era.

"The key factor is that most toys are available more cheaply and more conveniently online."