NEWS

Toys R Us seeks bankruptcy extension in USA

Published on: 15th January 2018

Retailer has also hired specialist liquidation firm to evaluate possible stores for closure in America.

Toys R Us has filed a motion with the US Bankruptcy Court to extend the 16th April deadline for reviewing its non-residential property leases. In return for extra time when deciding whether or accept or reject leases, the company has “negotiated a package of consideration with the Creditors’ Committee that the Debtors and the Creditors’ Committee believe fairly compensates landlords for the extension.”

The news comes as it was revealed that the retailer has also hired a firm that specialises in evaluating stores for liquidation.

The retailer has not announced how many stores it plans to close, but has said in a court filing that it had hired New York-based Malfitano Partners for help “soliciting and evaluating proposals to liquidate the inventory and furniture, fixtures, and equipment in certain store locations that the (company has) identified for closing.”

CEO David Brandon told USA Today in December that the company hopes to emerge from bankruptcy well before the 2018 holiday shopping season.

He commented: “We’re doing a complete review of our real estate portfolio. Everybody understands that the Chapter 11 process puts us in a position where we can consider making changes to our fleet of stores. We’re going through that process, and we’ll have a lot more to say about it probably in the first couple weeks of January.’’

As of yet, however, further information has not been forthcoming.

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