NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases a KBRA Credit Profile Report (KCP) highlighting the recent developments with Toys “R” Us, Inc.
On Thursday, March 15th, Toys “R” Us, Inc. filed a motion seeking authorization through bankruptcy court to wind down its U.S. operations, liquidate existing inventory and conduct store closures. The filing follows reports on Wednesday, March 14th that the CEO informed employees the company would shutter all of its U.S. stores, including those in Puerto Rico. The company has so far been unable to identify a potential investor or strategic buyer, and in recent days, news emerged the company has failed to remit payments to vendors.
The motion also seeks to establish bidding procedures for the sale of the retailer’s Canadian division. This coincides with reports indicating that toy manufacturer MGA Entertainment, Inc. is attempting to assemble its peers in the toy making industry to bid for Toys “R” Us Canada. The Canadian division also entered bankruptcy, but is in better financial health than its U.S. counterpart. MGA Entertainment is also exploring options to make a bid for up to 200 of the retailer’s top-performing U.S. stores with the potential of merging operations with Toys “R” Us Canada.
For a list of CMBS with exposure to the retailer, please see our most recent report, Toys “R” Bust, Retailer Prepares to Liquidate U.S. Portfolio, which can be accessed here. Additional information on the Toys “R” Us exposure will be included in the KBRA Credit Profile Reports we produce on a monthly basis for each transaction, which are available at kcp.kbra.com.
To view the report, click here.
- Toys "R" Bust, Retailer Prepares to Liquidate U.S. Portfolio - CMBS Exposure (March 2018)
- Toys “R” Us Announces Store Closures – CMBS Exposure (January 2018)
- No More Fun “N” Games for Toys “R” Us (September 2017)
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.