Economy
Related: About this forumToys 'R' Us Is Prepping to Liquidate Its U.S. Operations
Source: Bloomberg
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 chains 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 chains 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.
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Read more: https://www.bloomberg.com/news/articles/2018-03-08/toys-r-us-said-to-be-prepping-liquidation-of-u-s-operations
hate to see the job loss.
dweller
(23,562 posts)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
😆
kimbutgar
(20,882 posts)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 its going. And Im sad for the children who will miss out on the mega toy store experience.
kysrsoze
(6,010 posts)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.
elleng
(130,156 posts)Rene
(1,183 posts)why doesn't he fix Flint / Puerto Rico / Opiad issue with gazzlions of dollars he's made