Would post more but that's literally all Bloomberg is saying at the moment.
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Update 2: Officially filed Chapter 11.
Toys ”R" Us Inc. is preparing to file for bankruptcy as soon as today, according to people familiar with the situation, Bloomberg News reports.
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Toys ”R" Us Inc., which has struggled to lift its fortunes since a buyout loaded it with debt more than a decade ago, is preparing a Chapter 11 filing as soon as today, according to people familiar with the situation.
The move would send America's largest toy chain to bankruptcy court, dealing another blow to a brick-and-mortar industry that's already reeling from store closures, sluggish mall traffic and the threat of Amazon.com Inc.
The toy retailer has already hired a claims agent, which typically helps with administering a Chapter 11 process, people with knowledge of the situation said last week. And its vendors have been curtailing shipments amid concern that Toys ”R" Us might not be able to pay its bills.
With speculation of a bankruptcy mounting, shares of Toys ”R" Us's vendors tumbled on Monday. Shares of Mattel Inc., the maker of Barbie and Fisher-Price, fell 6.2 percent -- its worst decline in seven weeks. Hasbro, the company behind Monopoly, Nerf and Transformers, dropped 1.7 percent, marking its biggest decrease in almost two weeks.
Meanwhile, the cost of insuring against default on Toys ”R" Us debt has surged. Prices on six-month and one-year swaps have climbed to record highs, suggesting the market is pricing in all-but-certain odds of a Chapter 11 filing, which protects companies against creditors during a reorganization.
A representative for Toys ”R" Us declined to comment.
Update 2: Officially filed Chapter 11.
The retailer has $4.9 billion in debt, $400 million of which has interest payments due in 2018 and $1.7 billion of which is due in 2019.
"Today marks the dawn of a new era at Toys"R"Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way," said Dave Brandon, the company's chairman and CEO, said in a release announcing the filing.
"We are confident that these are the right steps to ensure that the iconic Toys"R"Us and Babies"R"Us brands live on for many generations," he added.
The toy seller also intends to seek protection in parallel proceedings for its Canadian subsidiary.
The company said it will continue to operate as usual its approximately 1,600 Toy R Us and Babies R Us stores around the world. The company's operations outside of the U.S. and Canada are not part of the protections proceedings, it said.
The retailer said that it has already received a commitment from some lenders, including a JPMorgan-led syndicate, for over $3 billion in debtor-in-possession financing. Although that's subject to court approval, Toys R Us said it "is expected to immediately improve the Company's financial health and support its ongoing operations during the court-supervised process."