• Shades of Mitt Romney...Toys 'R' Us files for bankruptcy ahead of holid

    From Leroy N. Soetoro@21:1/5 to All on Tue Sep 19 06:41:30 2017
    XPost: alt.toys.transformers, alt.business, sac.politics
    XPost: alt.politics.economics, soc.retirement

    http://www.reuters.com/article/us-toys-r-us-bankruptcy-toymakers/toys-r- us-files-for-bankruptcy-ahead-of-holiday-season-idUSKCN1BT2AV?il=0

    (Reuters) - Toys ‘R’ Us Inc, the largest U.S. toy store chain, filed for bankruptcy protection late Monday, the latest sign of turmoil in the
    retail industry that is caught in a viselike grip of online shopping and discount chains.

    The Chapter 11 filing is among the largest ever by a specialty retailer
    and casts doubt over the future of its about 1,600 stores and 64,000
    employees. It comes just as Toys ‘R’ Us is gearing up for the holiday
    shopping season, which accounts for the bulk of its sales.

    “While today’s decision does not necessarily mean it is game over for Toys
    ‘R’ Us, it brings to a close a turbulent chapter in the iconic company’s history,” said Neil Saunders, managing director of GlobalData Retail.

    Toys ‘R’ Us received a commitment for over $3 billion in debtor-in-
    possession financing from lenders including a JPMorgan-led bank syndicate
    and certain existing lenders, said the Wayne, New Jersey-based company,
    which also operates the Babies ‘R’ Us chain.

    The financing, subject to court approval, reassures its suppliers they
    will get paid for their Lego building blocks and Barbie dolls that are
    being shipped for the holiday season.

    “We expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” Chief Executive Dave Brandon

    “Together with our investors, our objective is to work with our
    debtholders and other creditors to restructure the $5 billion of long-term
    debt on our balance sheet.”

    Its Canadian unit intends to seek protection in parallel proceedings under
    the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior
    Court of Justice, Toys ‘R’ Us said in a statement.

    Operations outside of the United States and Canada, including about 255 licensed stores and joint venture partnerships in Asia, which are separate entities, are not part of the bankruptcy proceedings, Toys ‘R’ Us said.

    The company’s Toys ‘R’ Us and Babies ‘R’ Us stores and e-commerce sites
    around the world are open for business, it said.

    The company is saddled with debt from a $6.6 billion buyout in 2005 led by
    KKR & Co LP (KKR.N) and Bain Capital LP, together with real estate
    investment trust Vornado Realty Trust (VNO.N).

    Toys ‘R’ Us has bonds coming due next year that have lost half their value
    this month, according to Thomson Reuters data, as investors have grown concerned about a possible bankruptcy.

    The company opened a temporary store in New York City’s Times Square this
    year to capture more holiday shoppers, almost two years after it closed
    its flagship store barely a block away, driven out by high rents.

    “Vendors have cut them off based upon the rumors of the filing which has
    not been refuted,” said Jay Indyke, a bankruptcy attorney with the Cooley
    law firm.

    With assets of $6.9 billion based on its most recent annual report, it’s
    the second-largest retail bankruptcy, trailing the filing in 2002 by
    Kmart, which had $14.6 billion in assets, according to research firm Bankruptcydata.com.

    More than a dozen significant retail chains have filed for bankruptcy this year. Among them were Perfumania Inc, apparel chains rue21 Inc and
    Gymboree Corp, discount shoe chain Payless Holdings LLC and designer
    clothing chain BCBG Max Azria Global Holdings LLC.

    Major retailers including Macy’s Inc (M.N) and Sears Holding Corp (SHLD.O)
    have closed hundreds of locations as they struggle to compete discounters
    such as Wal-Mart Stores Inc (WMT.N) and Amazon.com Inc (AMZN.O). Amazon’s recent acquisition of high-end grocer Whole Foods Markets Inc stirred speculation that the online giant will use its pricing power and huge
    reach among U.S. consumers to go after market share of traditional brick- and-mortar grocers.

    Toys ‘R’ Us is the second-largest toy seller in the United States behind Amazon, according to consulting firm Kloster Trading Corp.

    “What they have going for them is they are the last major player in their market,” said David Berliner, a partner and restructuring specialist with
    BDO Consulting.

    “The vendors don’t want to see them fail, so I think they have a good opportunity to survive.”

    Toys ‘R’ Us filed the petition in the U.S. Bankruptcy Court for the
    Eastern District of Virginia in Richmond, Virginia.

    Donald J. Trump, 304 electoral votes to 227, defeated compulsive liar in
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    Congratulations President Trump. Thank you for ending the disaster of the Obama presidency.

    Under Barack Obama's leadership, the United States of America became the
    The World According To Garp.

    ObamaCare is a total 100% failure and no lie that can be put forth by its supporters can dispute that.

    Obama jobs, the result of ObamaCare. 12-15 working hours a week at minimum wage, no benefits and the primary revenue stream for ObamaCare. It can't
    be funded with money people don't have, yet liberals lie about how great
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    Obama increased total debt from $10 trillion to $20 trillion in the eight
    years he was in office, and sold out heterosexuals for Hollywood queer
    liberal democrat donors.

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