1600 stores, 64,000 employees, as well as behind a large number of partners, toys, the fate of the city reflects the toy industry.
September 7, Chinese and foreign toy network to cite the first message to disclose toy toy city (Toys R Us) deep debt crisis, does not rule out the application for bankruptcy protection According to the Wall Street Journal reported that the news triggered the upstream suppliers panic, have threatened to stop the supply of insiders revealed that many of the upstream suppliers have recently asked the toy R Us to pay the cash in cash, otherwise stop the supply.Although the toy R Us For the year-end shopping season prepared for the inventory has been the majority of hand, but then I am afraid can no longer purchase.
Reported that the supplier panic or make toys R Us in the year-end shopping season before running in the United States please bankruptcy - a prophecy!
US law Monday (18th) evening, the world's largest toy retailer US toy R Us officially filed for bankruptcy protection, the company in the United States bankruptcy court in Virginia launched a bankruptcy liquidation procedures; its Canadian branch is also preparing to the Ontario High Court Filed a similar application.
Chinese and foreign toy network to remind the domestic toy factory Business, the bankruptcy protection does not include the United States and Canada outside the business, including the Asian 255 stores, including other business is independent, and will not be affected. Toy R Us China has also announced that on September 23, Toy R Us - Shanghai Vientiane Park 'new retail' experience store is about to open, it will be its 11 years in China to open the first 139 stores.
Toy R Us statement said it hopes to get $ 3 billion in debt financing to support the financial restructuring. According to curiosity reported that Toy R Us has received $ 3 billion from JP Morgan and some existing lenders DIP financing (financing after the start of the insolvency proceedings, the priority of the DIP creditors, the earliest redemption of assets after bankruptcy liquidation), they will use the new financing to reorganize $ 5 billion in debt.
The company stressed that about 1,600 stores will continue to open the normal business, to ensure that the game, toy products distribution, and will use a large bankruptcy loan to continue to purchase goods and provide funds for day-to-day operations to apply for bankruptcy protection can help R Us Increase sales revenue in the upcoming holiday season.
Over the past four years, with 1640 stores in the toy R Us has never been profitable, although they also have to improve the electricity business website, lower product prices to deal with Amazon, Wal-Mart and other retailers competitive pressure, but the same quarter sales The amount fell by 4.1% year on year.
According to informed sources, as part of the reorganization process, toy R Us plans to close some poor performance of the store, the rest of the reorganization will focus more on the experience, and join the store game area Recreational facilities.
Toy R Us is committed to working with suppliers to ensure proper stocking and timely delivery.
Toys and Ravens are an important customer, and Mattel and Hasbro are traumatized, and they are reported to account for 10% of the revenue of the two companies, respectively, and their transactions are on credit , There is no guarantee.Current toy R Us is still less than $ 135 million US dollars, Hasbro 59 million dollars.
Mattel and Hasbro's share price were affected before Matthew filed for a bankruptcy protection statement on Monday: Mattel fell 6.2 percent to $ 14.87; Hasbro fell 1.7 percent to $ 93.24; another toy company Jakks Pacific shares also fell 6.6 percent to $ 2.85.