Toys ‘R’ Us gains as CFO ousted; American Apparel bonds up as CEO, founder given the boot

By Stephanie N. Rotondo

Phoenix, June 20 – The retail space was notable in the distressed debt market on Friday, driven by fresh news.

Toys “R” Us Inc. announced that it had terminated its chief financial officer. The company did not disclose why F. Clay Creasey Jr. was fired, but the company has been struggling recently to keep afloat.

That news came on the heels of the ouster of American Apparel Inc.’s founder and chief executive officer, Dov Charney.

That decision was announced late Thursday.

In response to the management changes, Toys’ debt was mostly higher on the day and American Apparel ended strong.

Other retailers were also faring better during the day’s session. Gymboree Corp.’s 9 1/8% notes due 2018 gained almost a point to close around 71, a trader said.

Even RadioShack Corp.’s 6¾% notes due 2019 inched up despite its stock falling below $1 for the first time ever.

A trader called the bonds up nearly a point at 35.

As for the stock (NYSE: RSH), it closed down 11 cents, or 10.43%, to 92 cents.

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