Toys “R” Us has hired law firm Kirkland & Ellis as restructuring consultants to help the reeling toy giant negotiate its debt as the holiday season approaches, CBS News reports. The company may seek bankruptcy protection.

In its first quarter earnings statement, the company reported over $5 billion in long-term debt as of April 29. Per CBS, $446 million of that is due by the end of this fiscal year, and $2.2 billion is due by the end of next fiscal year. Although Toys “R” Us is privately-held, it reports earnings because its debt is publicly traded, according to CBS.

“What Toys ‘R’ Us has been doing is extending the debt as it comes due and paying higher interest rates,” Howard Davidowitz, the head of the retail consultancy and investment bank Davidowitz & Associates, told CBS.

That approach has caused the debt to pile up. “They have got enormous debt,” says Davidowitz.

In its quarter two earnings call, scheduled for September 26, the company plans to discuss new fiscal strategies, and to unveil a program intended to improve customers’ experiences over the holiday season, spokeswoman Amy Von Walter told CBS.

Davidowitz said, per CBS, that a considerable percentage of Toys’ R Us’ debt results from the $6 billion sale of the company to a group of notable private equity firms in 2015. No evidence is available to corroborate the claim, though.

Toys “R” Us’ debt has prevented it from investing in online sales, which has, in turn, hampered its ability to compete with the likes of Walmart and Amazon. Over the last four years, CBS notes, the iconic toy retailer has spent just $100 million to bolster its online presence.

In 2013, Toys “R” Us generated 18 percent as much revenue as Amazon did; last year, Toys “R” Us’ figure was 8.5 percent of Amazon’s.

After Toys “R” Us failed to deliver many online orders in time for Christmas in 1999, the company partnered with Amazon in an effort to establish a stronger eCommerce presence. But, in 2004, Toys “R” Us sued Amazon for violating an exclusivity agreement, and relations soured. In 2009, Amazon paid Toys “R” Us $51 million to settle the case.

Founded in 1948, Toys “R” Us has been a household name in American industry for decades. Though the company has lost ground to competitors in recent years and is now buried under a potentially fatal mountain of debt, it maintains a strong presence in the market.

CBS quotes a June report by Moody’s, a credit rating agency, as saying: “We believe Toys ‘R’ Us remains a compelling competitive force in the toy and baby sub-segment of retail, however it is also our view that Toys’ competitive position continues to suffer challenges as a result of many of its larger, better-capitalized competitors such as Walmart, Target and Amazon using toys as traffic-drivers to both brick-and-mortar locations and websites, especially during the key holiday season, which seems to begin earlier every year.”

Forbes ranked Toys “R” Us the 22nd largest private company in the U.S. based on full-year revenue in 2016.  That year, the toy giant brought in $11.4 billion in revenue.

But, that figure marks a 2.2 percent drop from 2015. In fact, the company’s revenue has fallen in each of the last five years, according to data collected by D&B Hoovers. Since 2013, annual revenue has plummeted more than $2 billion—almost 15 percent. From 2013 to 2014, revenue dropped $1 billion (7.4 percent).

Gross profit has fallen $843 million—17 percent—since 2013, from $4.95 billion to $4.11 billion.

Toys “R” Us has reported net losses every year since 2014. That year, the company lost more than $1 billion. The bleeding has subsided each year since, though. In 2016, Toys “R” Us lost $36 million.

If anyone needs a good holiday, it’s Toys “R” Us.

Featured Image via Wikimedia Commons