At the first creditors meeting of Toy R Us Australia, McGrathNicol administrators revealed that there are 30 interested parties looking at the business.
As reported on Toy & Hobby Retailer, Jason Preston, administrator, said that the interested groups have a range of intentions, from buying the business to liquidating it. The interested parties have signed non disclosure agreements and are from both Australia and oversees.
It was also revealed that Toys R Us Australia currently has $60m of inventory; fixed assets of $16m; trade, employee and other creditors owed $3m (each category); and $90m owed to inter-company creditors. The global group has not reported an annual profit since 2013, according to reports.
The administrators said that they were likely to apply for an extension of two to three months to the convening period, allowing the interested parties time to mull over the information and put in offers.
Creditors will vote at the second meeting to decide whether a sale of the business will occur or if a liquidation process should begin, based on the findings and offers the administrators receive.
A committee of inspection (COI) was formed at the meeting, which allows voluntary creditors to represent the interests of all involved creditors.
McGrathNicol has approached all the previously interested parties about the new sales process.
Meanwhile, in Canada, Fairfax Financial secured the Toys R Us and Babies R Us operations in the region as the sales process closed. The company is now entirely Canadian-owned and operated.
Melanie Teed-Murch, president of Toys R Us Canada, commented: “We are thrilled to be part of the Fairfax family and to now operate as a reinvigorated company that is 100% Canadian. I would like to extend a heartfelt thank you to our customers for their loyalty, and for choosing to shop at Toys R Us and Babies R Us.”
The existing stores will adopt a similar format to the newly opened Canadian stores, which includes designated play areas, interactive stations and mobile-pay.