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Fri Mar 9, 2018, 02:27 PM

Toys 'R' Us Is Prepping to Liquidate Its U.S. Operations

Source: Bloomberg

Toys ‘R’ Us Is Prepping to Liquidate Its U.S. Operations

By Lauren Coleman-Lochner, Matthew Townsend, and Eliza Ronalds-Hannon
March 8, 2018, 4:15 PM EST Updated on March 9, 2018, 9:01 AM EST

→ Situation is fluid, and rescue deal could still emerge
→ Retailer entered bankruptcy last year with $5 billion in debt


Toys “R” Us Inc. is making preparations for a liquidation of its bankrupt U.S. operations after so far failing to find a buyer or reach a debt restructuring deal with lenders, according to people familiar with the matter.

While the situation is still fluid, a shutdown of the U.S. division has become increasingly likely in recent days, said the people, who asked not to be identified because the information is private. Hopes are fading that a buyer will emerge to keep some of the business operating, or that lenders will agree on terms of a debt restructuring, the people said.

The toy chain’s U.S. division entered bankruptcy in September, planning to emerge with a leaner business model and more manageable debt. A new $3.1 billion loan was obtained to keep the stores open during the turnaround effort, but results worsened more than expected during the holidays, casting doubt on the chain’s viability.

“While a Chapter 11 bankruptcy provides a company with breathing space, it is incumbent on the debtors’ management to show how it intends to reorganize as a going concern,” said Gregory Plotko, a partner in the bankruptcy practice at Richards Kibbe & Orbe LLP. “My sense is that the major creditor group has not yet heard a compelling enough story, nor has a ‘white knight’ appeared.”

-snip-


Read more: https://www.bloomberg.com/news/articles/2018-03-08/toys-r-us-said-to-be-prepping-liquidation-of-u-s-operations

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Reply Toys 'R' Us Is Prepping to Liquidate Its U.S. Operations (Original post)
Eugene Mar 2018 OP
Sherman A1 Mar 2018 #1
dweller Mar 2018 #2
kimbutgar Mar 2018 #3
kysrsoze Mar 2018 #4
elleng Mar 2018 #5
Rene Mar 2018 #6

Response to Eugene (Original post)

Fri Mar 9, 2018, 02:30 PM

1. Sad

hate to see the job loss.

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Response to Eugene (Original post)

Fri Mar 9, 2018, 02:41 PM

2. but but but WHAT ABOUT THE CHILDREN 😫

Toys R Us was the only store I could find the Ren and Stimpy farting dolls so many years ago... my daughters were big R&S fans and loved those dolls 😝
they still have them! although the fart bellows have long ago given up the ghost
😆

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Response to Eugene (Original post)

Fri Mar 9, 2018, 03:21 PM

3. My first job in college working toys r us at Christmas

My only and last job retail job. As a parent the store was a nightmare for me and heaven for my son. He will be upset it’s going. And I’m sad for the children who will miss out on the mega toy store experience.

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Response to Eugene (Original post)

Fri Mar 9, 2018, 03:33 PM

4. This is sad. We still shop there for birthday parties and holidays. Their selection is great.

However, I guess it's too difficult to compete with Amazon, Walmart and Target, and unfortunately kids tend to be more into tablets and videogames than traditional toys.

I won't miss Sears or K-Mart (aside from not being happy about those laid off), but I will miss Toys R Us if they don't find a buyer.

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Response to Eugene (Original post)

Fri Mar 9, 2018, 04:25 PM

5. which they've been doing for years.

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Response to Eugene (Original post)

Fri Mar 9, 2018, 05:22 PM

6. So Sad Jeff Bezos/Amazon has ruined so many businesses.

why doesn't he fix Flint / Puerto Rico / Opiad issue with gazzlions of dollars he's made

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