Toys ‘R’ Us Inc could file for bankruptcy in the coming weeks as pressure from skittish suppliers intensifies, the Wall Street Journal reported (paywall) on Friday, citing people familiar with the matter.
The company and its restructuring advisers areconsidering filing for Chapter 11 protection in the U.S. Bankruptcy Court in Richmond, Virginia, according to the WSJ report.
The privately-held toy retailer had previously said it was working with investment bank Lazard Ltd to help address its approximately $5 billion in debt, of which roughly $400 million comes due next year.
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.
Toys ‘R’ Us declined to comment on the report.
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4 comments:
They filed for Chapter 11, yesterday.
I remember a few years ago, I knew some of the people in charge of the Salisbury TRU. They said the worst thing TRU did was move out to the Northside. Business collapsed once they had to face all the competition head on.
I'm sure that goes for the rest of the country.
Tried using TRU for Christmas shopping last year and it was a joke. They didn't have any of the new toys in the stores and ordering on line was a complicated mess. I hope I never have to see TRU again.
Inch no more. They are there and declared.
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