Toys R Us in the US has hired lawyers to explore restructuring options ranging from bankruptcy to raising financing and restructuring debt.

The toys retailer’s US division will work with law firm Kirkland & Ellis to help it through the downturn in bricks-and-mortar retailing sweeping the US.

It has previously engaged investment bank Lazard to address its $5bn debt, of which $400m is due in 2018.

Toys R Us said that it would provide a further update on its restructuring at its second quarter results on September 26.

It added: “Toys R Us is evaluating a range of alternatives to address our 2018 debt maturities, which may include the possibility of obtaining additional financing.”

Toys R Us in Europe was restructured as recently as 2015, prompted by falling profits which spiralled into losses as a result of etailers and supermarkets muscling in on the toy market.