Steve’s breakdown: Toys “R” Us just secured $3.1 billion in financing and they need to be extra smart about how they spend that cash. Got any ideas? Let’m know.
WAYNE, NJ: In an important vote of confidence in its brand from key lenders, Toys “R” Us
closed on crucial financing just in time for the holiday crunch.
The retailer announced that it has closed on $3.1 billion of financing facilities that will support its operations during its restructuring process. The financing was from a group of lenders led by JP Morgan.
Toys “R” Us said the financing will also provide additional funds that will allow it to invest in various initiatives, including the renovation and modernization of its stores through improved layouts, updated lighting and other areas. The retailer also plans to use the finds to update its e-commerce sites and infrastructure “to better reflect its brand, promote the hottest toys and provide improved delivery capabilities so Toys “R” Us can effectively compete in the online shopping space.”
Toys “R” Us filed for Chapter 11
bankruptcy protection on Sept. 18 with a goal of restructuring its outstanding debt. The company’s Canadian subsidiary was granted protection in parallel proceedings under the Companies’ Creditors Arrangement Act (“CCAA”).
The retailer is gearing up for the holiday rush, hiring some 12,000 seasonal workers for its stores and fulfillment centers. It also has opened a temporary holiday store
in Times Square.