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Toys ‘R’ Us U.K. launches process to reposition real estate portfolio
By Caroline Salls
Pittsburgh, Dec. 4 – Toys ‘R’ Us, Inc.’s U.K. operation launched a process under which it is seeking creditor approval to reposition its real estate portfolio for future growth and profitability, according to a news release.
Toys ‘R’ Us said this move is being made as part of the company’s ongoing financial restructuring efforts.
According to the release, the U.K. Company Voluntary Arrangement (CVA) process will not impact any Toys ‘R’ Us entities or stakeholders outside the United Kingdom, including employees, vendors and customers.
Toys ‘R’ Us said its roughly 1,600 Toys ‘R’ Us and Babies ‘R’ Us stores around the world, including all stores in the United Kingdom, are currently open for business and continue to operate as usual.
“As we continued to work through the financial restructuring process, we made the decision to take action to put our U.K. operation on stronger financial footing,” chairman and chief executive officer Dave Brandon said in the release.
“Through the CVA process, we hope to receive authorization to restructure our U.K. lease obligations so that we will be better able to invest in our U.K. business and further improve the customer experience.”
Under the U.K.’s CVA process, Toys ‘R’ Us U.K. said it submitted a restructuring plan to its creditors and will solicit their approval of this plan over the next 14 days.
If approved by 75% of the creditors and then declared effective, the CVA plan would allow the U.K. entity “to move forward with a more cost efficient store base and footprint better suited to meet the needs of today’s consumer,” the release said.
Toys ‘R’ Us is a Wayne, N.J., toy retailer. The company filed for bankruptcy on Sept. 19 in the U.S. Bankruptcy Court for the Eastern District of Virginia under Chapter 11 case number 17-34665.
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