There are concerns over the future of a major toy retailer after the company filed for bankruptcy protection in America and Canada.

Toy 'R' Us, which has shops in Basildon and Lakeside, was once a dominant player in the toy market, but has struggled against online competition.

On the run up to Christmas, many parents will already be considering a trip to the toy giant for parents, but there are fears the shop might be heading the same wa as Woolworths.

The company has filed for bankruptcy protection in the US and Canada as it attempts to restructure its debts.

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 UK stores.

Toys R Us's operations in Australia, about 255 licensed stores and a joint venture partnership in Asia are also not included in the bankruptcy move.

Dave Brandon, Chairman and Chief Executive Officer said: "Today marks the dawn of a new era at Toys“R”Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way.

“Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.

"We are confident that these are the right steps to ensure that the iconic Toys“R”Us and Babies“R”Us brands live on for many generations.”

The company is facing financial pressures, with enormous debt levels among its immediate problems.

Already, various lenders, including a JPMorgan-led bank syndicate and some of the company's existing lenders, have committed more than $3bn in new financing to turn the company around.

Toys’R’Us has suffered falling like-for-like sales for three quarters in a row and reported a quarterly net loss of 164 million dollars (£121 million) on sales of 2.2 billion dollars (£1.6 billion) in June.

The group’s history dates back to the 1950s, but it arrived in the UK in 1985 with just five stores.

It now has 110 stores across the UK as well as a website, which launched in 1996.