From Home Furnishing Business
Toys R Us Closing All U.S. Stores
Toys R Us announced yesterday that the company is seeking a motion from Bankruptcy Court for approval to wind-down its U.S. business and liquidate inventory in all of the company’s U.S. stores.
The company also announced it is pursing a reorganization and a sale process for its Canadian and international operations in Asia, Germany, Austria and Switzerland.
International operations in Australia, France, Poland, Portugal and Spain are considering their options, including potential sale processes in their respective markets.
In connection with the sale process, the motion filed with the Bankruptcy Court included bidding procedures for the Canadian operations. Also disclosed was the fact that the company is engaged in discussions with certain interested parties for a transaction that could combine up to 200 of the top performing U.S. stores with its Canadian operations.
While discussions continue on the potential transaction, Toys R Us is seeking court approval to implement the liquidation of inventory in all the U.S. stores, subject to a right to recall any stores included in the proposed Canadian transaction.
Dave Brandon, chairman and CEO said, "I am very disappointed with the result, but we no longer have the financial support to continue the Company's U.S. operations. We are therefore implementing an orderly process to shutter our U.S. operations and will pursue going concern sales or reorganizations of certain of our international businesses, while our other international businesses consider their options."
"There are many people and organizations who have remained in our corner every step along the way. I want to thank our extraordinary team members who helped build Toys R Us into a global brand. I also want to express my appreciation for my colleagues on our board who have continued to provide support to sustain the brand and our operations throughout the restructuring process,” Brandon continued.
“I would also like to thank our vendors who we owe a great deal of gratitude to for their decades of support. This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years."
The company and its advisors are working to minimize the impact of the U.S. liquidation on the Canadian and other international markets.