Published: Sun, March 11, 2018
Economy | By

Toys 'R' Us planning to liquidate

Toys 'R' Us planning to liquidate

He noted that while liquidation is far from a certainty - reports this week said that the insolvent US parent company was still working to reach a deal with its lenders - the Canadian unit, a standalone business with 82 stores and $1.08 billion in annual revenue, has sparked some interest.

A new $3.1 billion loan was obtained to keep the stores open during the turnaround effort. As of Friday, the Toys R Us corporate website listed two job openings - one for a stock associate, the other for a sales associate - at the local store.

Things are also quickly deteriorating in many overseas divisions. The company's European wing is entertaining takeover bids. Toys "R" Us entered bankruptcy in September of 2017. Reuters said the chain, which filed for bankruptcy protection, has been unable to find a buyer or restructure its debt.

Toys "R" Us is still the place where up-and-coming products get discovered.

All Toys "R" Us stores could be closing as early as next week. The company fell on hard times past year, filing for chapter 11 protection. It initially pledged not to close stores, and its earnings had shown improvement by some measures. But now Toys R Us is evaluating bids to liquidate the remainder of its USA locations.

Toys R Us, based in Wayne, New Jersey, has struggled with debt since private-equity firms Bain Capital, KKR & Co. and Vornado Realty Trust took it private in a $6.6 billion leveraged buyout in 2005.

Up until the late 90s, Toys R Us was the top U.S. toy seller.

Toys "R" Us Inc. doesn't sell the most toys in the USA - that distinction goes to Walmart Inc. - but it has remained a key proving ground for kids' gadgets, games and other playthings.

CNBC says some lenders are asking the company to fully liquidate.

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