Toys"R"Us announced that it has filed a motion seeking Bankruptcy Court approval to begin the process of conducting an orderly wind-down of its U.S. business and liquidation of inventory in all 735 of the company's U.S. stores, including stores in Puerto Rico.
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oys"R"Us will provide more details about the plans for the liquidation of its U.S. stores and going out of business sales in the near term.
Toys"R"Us also announced that it is pursuing a going concern reorganization and a sale process for its Canadian and international operations in Asia and Central Europe, including Germany, Austria and Switzerland.
The company's international operations in Australia, France, Poland, Portugal and Spain are considering their options in light of this announcement, including potential sale processes in their respective markets. The company's stores in all these international markets are currently open and serving customers.
In connection with the sale process, the motion the company filed with the Bankruptcy Court included bidding procedures for the Canadian operations.
The company also disclosed that it is engaged in discussions with certain interested parties for a transaction that could combine up to 200 of the top performing U.S. stores with its Canadian operations.
While discussions continue on this potential transaction, Toys"R"Us is seeking court approval to implement the liquidation of inventory in all the U.S. stores, subject to a right to recall any stores included in the proposed Canadian transaction.
The previously announced administration of the UK business continues.
Dave Brandon, chairman and chief executive officer, said, "I am very disappointed with the result, but we no longer have the financial support to continue the company's U.S. operations.
"We are therefore implementing an orderly process to shutter our U.S. operations and will pursue going concern sales or reorganizations of certain of our international businesses, while our other international businesses consider their options." ■