![]() The company has about $5 billion in long-term debt and has been burning through cash, as sales decline. While many traditional retailers have struggled to compete with Amazon, the debt load carried by Toys"R" Us has amplified that pressure. The rapid growth of toy sales on Amazon has also cut into Toys"R' Us' market share. But it has faced intense competition from big box retailers like Walmart and Target that have ramped up toy offerings. For years, the company dominated toy sales, and its Babies"R" Us chain was a leader in baby products like diapers and strollers. ![]() The company was bought by the private equity firms Kohlberg Kravis Roberts and Bain Capital, as well as the real estate firm Vornado Realty Trust, for about $6 billion in 2005. The hiring of Kirkland & Ellis was first reported by CNBC."Toys 'R' Us is evaluating a range of alternatives to address our 2018 debt maturities, which may include the possibility of obtaining additional financing," a company spokeswoman said in a statement on Wednesday. But the hiring of the restructuring lawyers by a financially troubled company usually suggests that bankruptcy is a real possibility. ![]() The company, based in New Jersey, is still holding out hope that it can refinance the debt. ![]() Toys"R" Us must find a way to pay back about $400 million in debt as it tries to increase sales in the upcoming holiday season. Among the options that the private-equity-owned retailer is considering includes filing for bankruptcy, the people said. NYT New York Toys"R" Us has hired restructuring advisers from the prominent law firm Kirkland & Ellis as it tries to cope with hundreds of millions of dollars of debt coming due, according to two people briefed on the matter. ![]()
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