The company is seeking to reduce a $1 billion debt burden resulting from acquisitions of the assets of distressed mining firms.
The hedge funds that control the bankrupt retailer have decided a reorganization is preferable to selling off its name and web domains.
Cost overruns at Westinghouse Electric power plants have contributed to Toshiba's financial woes, forcing a $6.3 billion writedown.
CFO David Dick says Sycamore Partners "used its leverage" over one of the retailer's suppliers to precipitate the bankruptcy.
