Toys“R”Us, Inc. Files for Chapter 11
Wayne, New Jersey (September 18, 2017) — Toys“R”Us, Inc. 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 addition, the Company’s Canadian subsidiary voluntarily commenced parallel proceedings under the Companies’ Creditors Arrangement Act (“CCAA”) in Canada in the Ontario Superior Court of Justice. The Company’s operations outside of the U.S. and Canada, including its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings.
Toys“R”Us intends to use this court-supervised process 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 of bringing play to kids everywhere and being a best friend for parents.
The Company’s Toys“R”Us and Babies“R”Us stores around the world are operating as usual, providing customers with great service and a curated assortment of merchandise in the toy and baby categories. Customers can also continue to shop for the toy and baby products they are looking for online on the Company’s newly launched www.toysrus.com and www.babiesrus.com web stores.
The Company intends to pay vendors in full under normal terms for goods and services delivered on or after the filing date. As the Company’s international subsidiaries are not part of the Chapter 11 filings and CCAA proceedings, Toys“R”Us’ international subsidiaries will pay vendors for all goods and services in the normal course.
Current Capital Partners’ Role
Jonathan Foster was appointed to the Board of Wayne Real Estate Parent Company LLC, a wholly-owned subsidiary of Toys“R”Us, to help with the Company’s restructuring.