Toys"R"Us confirms filing Chapter 11 bankruptcy petitions in U.S.
Toys"R"Us announced that the company and certain of its U.S. subsidiaries and its Canadian subsidiary have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, VA. In addition, the company's Canadian subsidiary today intends to seek protection in parallel proceedings under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice. The company intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure. The company has received a commitment for over $3.0B in debtor-in-possession financing from various lenders, including a JPMorgan-led bank syndicate and certain of the company's existing lenders, which, subject to Court approval, is expected to immediately improve the company's financial health and support its ongoing operations during the court-supervised process. "Toys"R"Us is committed to working with its vendors to help ensure that inventory levels are maintained and products continue to be delivered in a timely fashion," the company stated. The company's operations outside of the U.S. and Canada, including its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings. Jefferies analyst Stephanie Wissink has previously noted that Toys 'R Us is in the top three retailers for Hasbro (HAS), Mattel (MAT) and JAKKS Pacific (JAKK). HAS MAT JAKK