Toys ‘R’ Us closes on $3.1 billion of financing to support operations

By Caroline Salls

Pittsburgh, Sept. 25 – Toys “R” Us, Inc. closed on $3.1 billion of financing facilities that will support its operations during its previously announced financial restructuring process, according to a news release.

Toys “R” Us said these financings will support the ongoing liquidity needs of the company and provide additional funds to invest in various initiatives, including the renovation and modernization of stores through improved layouts, updated lighting patterns and other areas to bring them into the next era of retail shopping.

The investments will also include updating the company’s e-commerce sites and infrastructure to better reflect its brand, promote the hottest toys and provide improved delivery capabilities so Toys “R” Us can effectively compete in the online shopping space.

As previously reported, various lenders contributed to the debtor-in-possession financing, including a JPMorgan-led bank syndicate and some of the company’s existing lenders.

On Sept. 20, Toys “R” Us received interim approval by the U.S. Bankruptcy Court for the Eastern District of Virginia to access up to $2.2 billion of the DIP financing. The final hearing is scheduled for Oct. 10.

Toys “R” Us also announced Monday that, in connection with the initiation of its financial restructuring proceedings, it has canceled a second-quarter earnings conference call scheduled for Sept. 26.

The company said it intends, as soon as possible, to resume filing relevant materials with the Securities and Exchange Commission concerning its financial performance.

In addition, to the Chapter 11 filing, the company’s Canadian subsidiary sought and was granted protection in parallel proceedings under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice.

Toys “R” Us is a Wayne, N.J., toy retailer. The company filed bankruptcy on Sept. 19 under Chapter 11 case number 17-34665.

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