Toys ‘R’ Us mulls bank­ruptcy fil­ing

Oman Daily Observer - - FRONT PAGE -

VIR­GINIA: Toys ‘R’ Us Inc could file for bank­ruptcy in the com­ing weeks as pres­sure from skit­tish sup­pli­ers in­ten­si­fies, the Wall Street Jour­nal re­ported on Friday, cit­ing peo­ple fa­mil­iar with the mat­ter.

The com­pany and its restruc­tur­ing ad­vis­ers are con­sid­er­ing fil­ing for Chap­ter 11 pro­tec­tion in the US Bank­ruptcy Court in Rich­mond, Vir­ginia, ac­cord­ing to the WSJ re­port.

The pri­vately-held toy re­tailer had pre­vi­ously said it was work­ing with in­vest­ment bank Lazard Lim­ited Inc to help ad­dress its ap­prox­i­mately $5 bil­lion in debt, of which roughly $400 mil­lion comes due next year.

The po­ten­tial Chap­ter 11 fil­ing could be a re­sult of the com­pany’s sup­pli­ers tight­en­ing trade terms, in­clud­ing hold­ing back on ship­ments un­less the toy re­tailer is able to make cash pay­ments on de­liv­ery, the newspaper re­ported.

Toys ‘R’ Us de­clined to com­ment on the re­port.

The move by Toys ‘R’ Us to po­ten­tially file for bank­ruptcy comes at a time when more and more con­sumers in­creas­ingly make pur­chases from on­line re­tail­ers like Ama­zon.com Inc and avoid vis­it­ing brick-and-mor­tar shops.

There have been more than a dozen sig­nif­i­cant re­tail bank­rupt­cies this year, but none for re­tail­ers as big as Toys ‘R’ Us, which has more than 1,600 stores world­wide.

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