WAYNE, NJ–Toys R Us filed documents in bankruptcy court on Thursday seeking approval to liquidate its inventory in its approximate 800 US stores. It is not an entirely unexpected move, following the retailer's bankruptcy last September and its subsequent move to liquidate about 180 stores under its initial restructuring efforts. It is unclear what the final catalyst was for this latest filing — news reports have said the company has been unable to stay on top of its loan payments and lenders had been urging a complete liquidation.
The company filed for bankruptcy protection with $4.9 billion of debt, much of it originating when KKR, Bain Capital Partners and Vornado Realty Trust took the retailer private in 2005.
It is unclear what will happen to the retail stores; most certainly will closed but Reuters reports that the retailer is in talks to sell 200 of its stores as part of a deal to sell its 80 or so stores in Canada.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
