Toys “R” Us announced that, as part of the Company’s ongoing financial restructuring efforts, the Company’s United Kingdom (UK) operation has initiated a process by which it is seeking creditor approval to reposition its real estate portfolio.
The UK Company Voluntary Arrangement (CVA) process will not impact any Toys “R” Us entities or stakeholders – including employees, vendors and customers – outside the UK. The Company’s approximately 1,600 Toys “R”Us and Babies “R” Us stores around the world, including all stores in the UK, are currently open for business and continuing to operate as usual.
Dave Brandon, chairman and C.E.O., states, “As we continued to work through the financial restructuring process, we made the decision to take action to put our UK operation on stronger financial footing. Through the CVA process, we hope to receive authorization to restructure our UK lease obligations so that we will be better able to invest in our UK business and further improve the customer experience. Importantly, our stores and operations in our other global markets will not be impacted by this process.”
Under the UK’s CVA process, Toys “R” Us UK has submitted a restructuring plan to its creditors and will solicit their approval of this plan over the next 14 days. If approved by 75% of the creditors and then declared effective, the CVA plan would allow the UK entity to move forward with a more cost efficient store base and footprint.
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