Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Toys “R” Us Bankruptcy Liquidation Approval Sought

0
0

Toys “R” Us filed with the U.S. Bankruptcy Court a motion for entry of orders authorizing the Debtors to wind-down U.S. operations, authorizing the Debtors to conduct U.S. store closings, establishing bidding procedures for the sale of the Debtors’ Canadian equity and enforcing administrative stay.

The Company announced that this will allow it to begin the process of conducting an orderly wind-down of its U.S. business and liquidation of inventory in all 735 of its U.S. stores, including those in Puerto Rico.

The motion explains, “By this Motion, the Debtors are taking the prudent and responsible step of seeking authority to begin an immediate and orderly liquidation of their U.S. business and to sell the Debtors’ equity interest in the Canadian operations. To effectuate the U.S. wind-down, the Debtors seek to enter into an agreement with a consortium of liquidators that has been negotiated among the Debtors, the Creditors’ Committee, the agents to the Debtors’ secured DIP facilities, and the B-4 Lenders, and to obtain broad relief for store closing procedures that will maximize the value of the inventory in the Debtors’ stores and distribution centers. Concurrent with the filing of this Motion, the Debtors have issued notices of termination to U.S. employees consistent with state and federal WARN statutes, which generally require a 60-day notice period.”

In addition, “Importantly, many of the Debtors’ operations throughout Canada, Europe, and Asia (the ‘International Operations’) remain strong, viable businesses with active prospects for a successful going-concern reorganization or sale processes. In addition to moving forward now with a sale process of Toys-Delaware’s equity in the Canadian business (and potentially including up to 200 U.S. stores), the Debtors are focused on limiting any negative effect the U.S. liquidation may have on the International Operations.”

Dave Brandon, chairman and C.E.O., comments, “I am very disappointed with the result, but we no longer have the financial support to continue the Company’s U.S. operations.”

The Court scheduled a March 20, 2018 hearing to consider the motion.

Read more Toys “R” Us bankruptcy news.

The post Toys “R” Us Bankruptcy Liquidation Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images