Toys ‘R’ Us wins approval to close up to 182 ‘underperforming’ stores

By Caroline Salls

Pittsburgh, Feb. 6 – Toys “R” Us, Inc. received court approval of its consulting agreements with two joint ventures that will conduct closing sales at up to 182 “underperforming brick-and-mortar store locations,” according to an order filed Tuesday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

As previously reported, the store-closing sales will be conducted in accordance with a consulting agreement between the company and a joint venture comprised of Tiger Capital Group, LLC and Great American Group, LLC, as well as an agreement with Hilco Merchant Resources, LLC and Gordon Brothers Retail Partners, LLC.

The company said the decision on whether or not to close all 182 stores will depend on whether it is able to negotiate more favorable lease terms and rent reductions for certain stores with landlords as part of ongoing negotiations.

The store-closing sales were expected to begin on Feb. 7 and end by no later than April 15.

The consultants will receive a base fee of 1.1% of all gross sales proceeds.

Toys “R” Us is a Wayne, N.J., toy retailer. The company filed for bankruptcy on Sept. 19, 2017 under Chapter 11 case number 17-34665.

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