Toys "R" Us Files for Chapter 11 Bankruptcy
Sept 7, 2017 17:37:48 GMT -5
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Post by Deleted on Sept 7, 2017 17:37:48 GMT -5
Statement from Toys R Us - Link provided by member iamkrang
www.toysrusinc.com/restructuring
From the statement:
"To achieve our financial objectives, Toys“R”Us and some of our U.S. subsidiaries and our Canadian subsidiary proactively and voluntarily filed for Chapter 11 of the Bankruptcy Code in the U.S. Our Canadian subsidiary also began parallel proceedings under the Companies’ Creditors Arrangement Act in Canada."
Information on Chapter 11 - www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics
Washington Post -
www.washingtonpost.com/news/business/wp/2017/09/19/toys-r-us-files-for-bankruptcy-amid-struggle-to-pay-down-billions-in-debt/?utm_term=.4509e92080a9
From the article:
"Toy store chain Toys R Us filed for bankruptcy Monday night after struggling for years to pay down billions of dollars in debt and remain relevant in an era of online shopping."
CNBC - Original article that was linked to this thread
www.cnbc.com/2017/09/06/toys-r-us-weighs-possible-bankruptcy-filing.html
From the article:
“Addressing the retailer's debt load prior to the crucial holiday season could give its major vendors such as Mattel and Hasbro clarity into the company's long-term viability to help ensure the toymakers continue to stock its shelves throughout the holidays.”
Fortune -
fortune.com/2017/09/07/toys-r-us-bankruptcy/
"While Chapter 11 filings are one common option to clean up one's balance sheet and break leases, many companies seek instead to refinance their debt, restructure it or make moves such as trade debt for equity, so Toys R Us' move doesn't mean that one option is more likely than another at this point. "While the decision of Toys R Us to appoint restructuring advisors is not necessarily a sign that bankruptcy is imminent, it is an indication that the company is in a very uncomfortable financial position," said Neil Saunders, Managing Director of GlobalData Retail."
New York Times -
www.nytimes.com/2017/09/06/business/toys-r-us-bankruptcy-advisers.html
From the article:
"For years, the company dominated toy sales, and its Babies “R” Us chain was a leader in baby products like diapers and strollers. But it has faced intense competition from big box retailers like Walmart and Target that have ramped up toy offerings. The rapid growth of toy sales on Amazon.com has also cut into the market share of Toys “R’ Us."
Time / Money -
time.com/money/4931640/toys-r-us-sales-bankruptcy-debt/
"For the time being, however, "bankruptcy isn't seriously being discussed" by Toys R Us, CNBC reported, citing sources familiar with the matter. But bankruptcy isn't off the table either, retail experts say."
Wall Street Journal - Requires subscription/sign in
www.wsj.com/articles/toys-r-us-seeks-help-with-its-debt-1504735544
From the article:
"Toys “R” Us Inc. has retained lawyers from Kirkland & Ellis LLP to help restructure $400 million in debt due next year, a person familiar with the matter said, the latest move by the toy chain as it struggles with growing online competition."
Edit: Added a few more sources reporting on it and a few key talking points from the articles, some counter one another, others provide info as to what this could actually mean.
Edit #2: Added a video from "Retail Archaeology" on YouTube that was published on 9/7/17. This channel is great, he visits stores that have had their heyday pass them by and gives some info on them. This video is from a store in Arizona on a Saturday afternoon in 2017. It's great, he gives his personal experiences, shows old commercials, shows footage from a video game section in 1990, interesting watch.
Edit #3: Added Toys "R" official statement on filing Chapter 11, added updated articles, updated thread title.
www.toysrusinc.com/restructuring
From the statement:
"To achieve our financial objectives, Toys“R”Us and some of our U.S. subsidiaries and our Canadian subsidiary proactively and voluntarily filed for Chapter 11 of the Bankruptcy Code in the U.S. Our Canadian subsidiary also began parallel proceedings under the Companies’ Creditors Arrangement Act in Canada."
Information on Chapter 11 - www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics
Washington Post -
www.washingtonpost.com/news/business/wp/2017/09/19/toys-r-us-files-for-bankruptcy-amid-struggle-to-pay-down-billions-in-debt/?utm_term=.4509e92080a9
From the article:
"Toy store chain Toys R Us filed for bankruptcy Monday night after struggling for years to pay down billions of dollars in debt and remain relevant in an era of online shopping."
CNBC - Original article that was linked to this thread
www.cnbc.com/2017/09/06/toys-r-us-weighs-possible-bankruptcy-filing.html
From the article:
“Addressing the retailer's debt load prior to the crucial holiday season could give its major vendors such as Mattel and Hasbro clarity into the company's long-term viability to help ensure the toymakers continue to stock its shelves throughout the holidays.”
Fortune -
fortune.com/2017/09/07/toys-r-us-bankruptcy/
"While Chapter 11 filings are one common option to clean up one's balance sheet and break leases, many companies seek instead to refinance their debt, restructure it or make moves such as trade debt for equity, so Toys R Us' move doesn't mean that one option is more likely than another at this point. "While the decision of Toys R Us to appoint restructuring advisors is not necessarily a sign that bankruptcy is imminent, it is an indication that the company is in a very uncomfortable financial position," said Neil Saunders, Managing Director of GlobalData Retail."
New York Times -
www.nytimes.com/2017/09/06/business/toys-r-us-bankruptcy-advisers.html
From the article:
"For years, the company dominated toy sales, and its Babies “R” Us chain was a leader in baby products like diapers and strollers. But it has faced intense competition from big box retailers like Walmart and Target that have ramped up toy offerings. The rapid growth of toy sales on Amazon.com has also cut into the market share of Toys “R’ Us."
Time / Money -
time.com/money/4931640/toys-r-us-sales-bankruptcy-debt/
"For the time being, however, "bankruptcy isn't seriously being discussed" by Toys R Us, CNBC reported, citing sources familiar with the matter. But bankruptcy isn't off the table either, retail experts say."
Wall Street Journal - Requires subscription/sign in
www.wsj.com/articles/toys-r-us-seeks-help-with-its-debt-1504735544
From the article:
"Toys “R” Us Inc. has retained lawyers from Kirkland & Ellis LLP to help restructure $400 million in debt due next year, a person familiar with the matter said, the latest move by the toy chain as it struggles with growing online competition."
Edit: Added a few more sources reporting on it and a few key talking points from the articles, some counter one another, others provide info as to what this could actually mean.
Edit #2: Added a video from "Retail Archaeology" on YouTube that was published on 9/7/17. This channel is great, he visits stores that have had their heyday pass them by and gives some info on them. This video is from a store in Arizona on a Saturday afternoon in 2017. It's great, he gives his personal experiences, shows old commercials, shows footage from a video game section in 1990, interesting watch.
Edit #3: Added Toys "R" official statement on filing Chapter 11, added updated articles, updated thread title.
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