Insolvency RecordCASE FILES

United States ยท Retail

Toys "R" Us, Inc. insolvency: proceedings and outcome

Toys R Us, a US toy retailer owned since a 2005 buyout by KKR, Bain Capital and Vornado Realty Trust, filed for Chapter 11 in the US Bankruptcy Court for the Eastern District of Virginia on 18 September 2017. In March 2018 it filed to wind down its US business and all remaining US stores closed by 29 June 2018. The Canadian business was sold and the company later emerged as Tru Kids.

Liquidated The US store business was liquidated. The Canadian business was sold and the brand continued through Tru Kids.3,2

First filing18 September 2017
Liabilities reportedUSD about 5 billion in long-term debt
Proceedings1

Long-term debt at filing per Wikipedia. CNBC reported the 6.6 billion USD 2005 buyout left the company with 4.9 billion USD of debt. Figures as of September 2017.3,2

Proceedings

TypeCourt or bodyCaseFiled
Chapter 111,3US Bankruptcy Court for the Eastern District of Virginia, Richmond Division, United States (Virginia)18 September 2017

Timeline

  1. Toys R Us, Inc. and certain subsidiaries filed Chapter 11 petitions in the Eastern District of Virginia, Richmond Division.1,3
  2. The company filed to close or sell its roughly 800 US stores.2,3
  3. The Canadian division of 82 stores was sold to Fairfax Financial for about 234 million USD.3
  4. All remaining US locations closed.3
  5. The company emerged from bankruptcy as Tru Kids.3
  6. WHP Global acquired a controlling interest in Tru Kids, Inc.3

Sources

  1. US Securities and Exchange Commission (EDGAR), Toys R Us, Inc. Form 8-K (Chapter 11 filing) (19 September 2017)
  2. CNBC, Toys R Us submits plan to close or sell US store base (15 March 2018)
  3. Wikipedia, Toys "R" Us (27 October 2026)