NEWS

Toys R Us claims most top vendors have resumed US shipments

Published on: 25th October 2017

Bankruptcy lawyer says top products are being shipped, allowing retailer to stock shelves ahead of holiday season.

Joshua Sussberg, an attorney with the company’s law firm, Kirkland & Ellis, said “Inventory is on the shelves” at a US Bankruptcy Court hearing in Richmond, Virginia, adding that the company was well-stocked with the “latest and greatest” in toys.

Toys R Us generates roughly 40% of total revenues in the fourth quarter, and industry experts have expressed concern over the big-box retailer’s ability to retain vendors and customers after its Chapter 11 bankruptcy filing on 19th September.

At the time of the filing, nearly 40% of its trade base had stopped shipments. Now, the lawyer indicates that 100% of merchandise vendors that supply the top 20 products are actively shipping, followed by 49 of the top 50 vendors and 91 of the top 100.

However, Toys R Us still owes creditors $5b, and at least two major toymakers, Hasbro and Jakks Pacific, have warned that the bankruptcy would hurt their business this year.

Some smaller toymakers have decided to stop shipments.

Meanwhile, the unsecured creditors committee, which includes Mattel, Lego Systems and Simon Property Group, plans to investigate financial transactions made before the Chapter 11 filing, lawyer Kenneth Eckstein said on Tuesday.

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