FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Toys"R"Us Receives Final Court Approval for $3.1B of New Financing

October 26, 2017, 08:00 AM
Filed Under: Bankruptcy

Toys"R"Us, Inc. announced that the U.S. Bankruptcy Court for the Eastern District of Virginia entered a final order granting the company authority to access the full amount of its more than $3.0 billion in debtor-in-possession (DIP) financing. The Court also granted final approvals for the Company's "First Day Motions" intended to support the business, including continuing to pay employee wages and benefits, honoring customer programs and paying foreign vendors in full for all goods and services under normal terms.

As ABL Advisor reported in Septemeber, the company received a commitment for over $3.0 billion in debtor-in-possession (DIP) financing from various lenders, including a JPMorgan-led bank syndicate and certain of the company’s existing lenders, which, subject to Court approval, is expected to immediately improve the Company’s financial health and support its ongoing operations during the court-supervised process. Toys“R”Us is committed to working with its vendors to help ensure that inventory levels are maintained and products continue to be delivered in a timely fashion.

Dave Brandon, Chairman and Chief Executive Officer, said, "We are continuing to provide customers outstanding service whenever, wherever and however they want to shop with us – just as we have for the past 70 years, and will continue to do for decades into the future. Our brick and mortar and web stores around the world are open and continuing to serve customers. As we approach the busy and ever-important holiday season, our teams are working diligently behind the scenes to ensure we can deliver on our commitment to be champions of play and a parent's best friend. Our team members are fired up and ready to reward the millions of customers who continue to put their trust in our iconic global brand."

Brandon continued, "During this highly competitive time of the year, our teams know that we have to be totally bold and different. I won't give away all our plans just yet but shoppers should know about our improved layaway program – with a daily lottery giveaway; Parents-only late night shopping events; and a Price Match Promise where we'll donate $1 to Toys for Tots for every price match we do over Holiday. There is simply no reason to go somewhere else – our focus is kids and families every day of the year – unlike some of our competitors who only play (pun-intended) a few weeks a year."

As previously announced, on September 18, 2017, Toys"R"Us and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, VA. In addition, the Company's Canadian subsidiary sought and was granted protection in parallel proceedings under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice. The Company intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents.
Kirkland & Ellis LLP is serving as principal legal counsel to Toys"R"Us, Alvarez & Marsal is serving as restructuring advisor and Lazard is serving as financial advisor.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.