Economy

Toys 'R' Us preparing for possible bankruptcy filing

Toys 'R' Us preparing for possible bankruptcy filing”

Toys R Us is considering filing for Chapter 11 bankruptcy before the holidays.

Toys "R" Us has, however, been profitable recently, reporting earnings of $790 million in its last quarterly filing - the most since 2012 - and second quarter 2017 earnings numbers will be reported on September 26, when the company said it will also update investors on refinancing and other plans.

According to commentators, the company's move comes as a pointer to the distress felt by retailers of all sizes as consumers increasingly shop online at sellers such as Amazon.com Inc or shop at discounters like Wal-Mart Stores Inc. Toys "R" Us now has more than 1,600 branches across the globe.

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. Reuters said the company was working on a loan as part of its bankruptcy filing to reassure its vendors that it can pay for the toys to keep its shelves stocked. Toys "R" Us tapped restructuring attorneys from Kirkland & Ellis LLP, CNBC reported this month.

At highest priority for Toys "R" Us is an effort to refinance $400 million of debt that will be due next year. Buyout firms KKR & Co LP and Bain Capital LP, together with real estate investment trust Vornado Realty Trust, took Toys "R" Us private for $6.6 billion in 2005.

The toy company has more than 1,600 stores worldwide, meaning the move could endanger thousands of jobs. Toys "R" Us opened a store in New York City's Times Square this year to capture more holiday shoppers.



Like this

loading...
loading...

Latest


18 September 2017
Barcelona Now Looking To Make Bid For Liverpool's Sadio Mane
I'm working hard, my thoughts are on the team's goals, making a good season". The players, the directors, the technical staff. "No.

18 September 2017
Canelo Downplays GGG's Power - "He's Not The Monster Everybody Was Talking About"
The result increases the possibility of a rematch, with both boxers declaring they were keen to fight again. I'm still the champion. "It is not what they actually spoke about, not what I thought".

18 September 2017
Will Super Micro Computer, Inc. (SMCI) Short Squeeze Soon?
A month ago, they told us to expect earnings of US$0.56 per share while three months ago their EPS consensus estimate was US$0.6. ValuEngine upgraded Super Micro Computer from a "hold" rating to a "buy" rating in a research report on Wednesday, July 19th.

18 September 2017
Giving De Boer time would have been 'negligent', Palace chairman claims
The former England boss watched the Eagles slump to another defeat last weekend in the Premier League as Southampton won 1-0 in south London.

18 September 2017
Nabriva Therapeutics AG's (NBRV) "Overweight" Rating Reaffirmed at Cantor Fitzgerald
The company was formerly known as Nabriva Therapeutics Forschungs GmbH and changed its name to Nabriva Therapeutics AG in 2007. Acuta Capital Partners, LLC reduced its investment by selling 28,673 shares a decrease of 4.1% from 12/31/2016 to 03/31/2017.

18 September 2017
Conference in NY on Civilization Interaction between US, Muslim World
The conference was attended by 450 delegates from religious, cultural and political groups in the Muslim and non-Muslim world. There will also be mutual dialogue sessions between a number of Muslim and American students.

18 September 2017
Jamie Carragher raves about Alex Iwobi's display for Arsenal at Chelsea
We are focused on whether the No.9 scores or not. "When we had the ball, we played some brilliant one-touch football". His physicality may have earned him his nickname but he really is some player. "That's what we did today".

18 September 2017
Rating Roundup: Denbury Resources (DNR)
DNR is now undervalued by -27.15% relative to the average 1-year price target of $1.51 taken from a group of Wall Street Analysts. With 5.18M avg volume, 14 days are for Denbury Resources Incorporated (NYSE:DNR)'s short sellers to cover DNR's short positions.

18 September 2017
SpaceX Dragon cargo capsule released from ISS
Recovery forces will retrieve the capsule containing cargo and research that focuses on biological and technological studies. The Lung Tissue experiment used the microgravity environment of space to test strategies for growing new lung tissue.

18 September 2017
Rana Daggubati to play a scientist
The makers are planning to make it in Hindi with English dialogues, making it viewable to Hollywood audiences as well. It was going from Mandvi to Mumbai and there were more than 700 people on board when the ship went missing.