Toys R Us has seen numerous suppliers scale back shipments while it struggles to stay out of bankruptcy, according to Bloomberg.
The US-based toy retailer is currently in talks with lenders hoping to secure a loan which would allow it to continue trading while it executes a recovery operation through bankruptcy proceedings.
Subsequently, insurance on shipments of supplies sent to the retailer has skyrocketed, and suppliers have begun to reduce shipments over high prices and fears they won’t recoup investment if the company goes under.
It is currently $400 million (£295 million) in debt, due next year.
It is seeking to refinance this debt as soon as possible to regain suppliers’ trust as the holiday season approaches.
Toys R Us reportedly makes around 40 per cent of its sales over the fourth quarter, and the vital period will likely determine its future.