US toy retail giant Toys R Us files for bankruptcy in US, Canada
September 22, 2017, 4:40:01 CEST | Wikinews

Thursday, September 21, 2017 


Economy and business



Related articles


21 September 2017: US toy retail giant Toys R Us files for bankruptcy in US, Canada
1 August 2017: Anthony Scaramucci leaves role as US White House communications director after ten days
7 July 2017: Volvo announces all new car models electric or hybrid from 2019
17 June 2017: Amazon.com to acquire Whole Foods at US$42 per share
2 May 2017: Several episodes of 'Orange is the New Black' released prematurely by hacker


Collaborate!


Pillars of Wikinews writing
Writing an article



On Monday night, New Jersey, US-based toy retail giant Toys R Us filed for bankruptcy in the US as well as in Canada. The retailer filed it from Richmond, Virginia for Chapter 11 bankruptcy code in the US, and a judge allowed a loan of over US$2 billion.

According to the filing, the retail chain own US$6.6 billion in assets, but has a debt of US$7.9 billion. They were under a roughly US$5 billion debt since the company underwent a three-way acquisition in 2005. Kohlberg Kravis Roberts, Bain Capital, and Vornado Realty Trust acquired Toys R Us for around US$7 to US$7.5 billion. After the US judge approved a loan, Toys R Us received about US$3 billion from the lenders to continue the business and survive a competitive market, and restructure their business model. E-commerce giant Amazon.com, Walmart and Target are some of the competitors for the conventional 'brick and mortar' toy shop, with lower priced-merchandise and fast, cheap delivery. In a conference call in June, CEO Dave Brandon said "very, very aggressive pricing online" was causing problems. He also said the company was experiencing "significant weakness in demand for their products globally". Toys R Us are to clear a debt of US$400 million by May 2018.

Toys R Us said they would continue to operate for the holiday season. Bankruptcy lawyer Jeff Gleit said Toys R Us "need to do both a financial restructuring as well as an operational restructuring" and "needs to modernize with the times". Last holiday season, Toys R Us made sales around US$4.5 billion. Overall, the company reported a US$29 million loss in 2016. CEO Brandon said, "Our objective is to work with our debt holders and other creditors to restructure the US$5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business".

Toys R Us employs more than 60 thousand people in 38 countries around the world in more than 1600 stores. The company's stocks fell by six percent after filing for Chapter 11 protection. US bankruptcy code Chapter 11 allows the company to restructure under a plan approved by the court. The company would also be shielded from creditors' claims during the process. For the stores located in Canada, Toys R Us filed bankruptcy in Ontario and are to undergo reorganisation. However, 259 stores located outside the US or Canada will not undergo reorganisation, the company said.

Over 300 US-based retailers filed bankruptcy this year, and hundreds of stores closed.

Source: Wikinews
Share this article:
share article on facebook share article on twitter share article on google+ share article on tumblr share article on blogger share article on reddit

Articles that may interest you:


US toy retail giant Toys 'R' Us files for liq...

Thursday, March 15, 2018  United States Related articles 15 March 2018: US toy retail gi...
Send us your articles and web-novels!
comments powered by Disqus
Most popular


Recently Viewed:


US toy retail giant Toys R Us files for bankruptcy i...

Thursday, September 21, 2017  Economy and business Related articles 21 September 2017...


FIFA World Cup 2018 Last 16: Sweden, England knock o...

Friday, July 6, 2018  2018 FIFA World Cup More from 2018 FIFA World Cup 6 July 2018: F...


Malaysia: 'Most' debris found on Maldives islands no...

On Tuesday, the team of Malaysian investigators arrived in Maldives to take charge of the de...


English football: Chelsea announces Maurizio Sarri a...

Sunday, July 15, 2018  Football Related football news 15 July 2018: English football: Ch...


FIFA World Cup 2018 quarterfinals: France, Belgium b...

Monday, July 9, 2018  2018 FIFA World Cup More from 2018 FIFA World Cup 9 July 2018: F...

Automotive
Reviews | Technology | Projects & Tuning | Events | Racing
Business & Technology
Business & Economy | Mobile | Internet & Media | Security & Privacy | Gadgets & Tech | Software
Lifestyle
Health, Food & Fitness | Fashion | Gardening | DIY | Homes
Society
Accidents | Crime | Culture | Finance | Politics
Science & Environment
Wildlife | Green | Space
Gaming
Reviews
Society
Accidents | Crime | Culture | Finance | Politics
Travel
MM-iNEWS
Copyright & Privacy | Site Roadmap | Sitemap | Contact
Web Development @ OverHertz Ltd
Ω