WAYNE, N.J., Sept. 20, 2017 /PRNewswire/ -- Toys"R"Us, Inc. ("the Company") today announced that the U.S. Bankruptcy Court for the Eastern District of Virginia granted either final or interim approval for all of its first day motions related to its Chapter 11 restructuring. Collectively, the orders granted by the Court at a hearing on September 19 will help ensure that the Company continues normal business operations throughout the financial restructuring process.
Dave Brandon, Chairman and Chief Executive Officer, said, "The Court's approvals of the First Day Motions are a positive and important first step in the financial restructuring process that will help allow Toys"R"Us to continue to operate as usual and provide customers an outstanding experience in our physical and web stores around the world. We are using this financial restructuring process to achieve greater financial flexibility to invest in our business and allow us to be a strong champion of play for all kids and a trusted friend to parents everywhere."
Mr. Brandon continued, "Our shelves are well-stocked with the hottest toys as we prepare for the Holiday season, and we are excited about the many events, new technology and features we'll have in our stores and online. I want to thank our team members for their continued focus and commitment to serving the millions of customers who choose to shop with us for their toy and baby product needs."
The Court today entered an order granting the Company interim authorization to access up to $2.2 billion in debtor-in-possession ("DIP") financing which will be available to U.S., Canadian and international entities. This DIP financing will be available to support operations during the court-supervised process. The Company also received authorization to continue payment of employee wages and benefits and to honor customer programs. Toys"R"Us intends to pay vendors in full under normal terms for goods and services provided after the filing date.
As previously announced, on September 18, 2017, Toys"R"Us and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, VA. In addition, the Company's Canadian subsidiary sought and was granted protection in parallel proceedings under the Companies' Creditors Arrangement Act ("CCAA") in the Ontario Superior Court of Justice. The Company intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents.
Additional information can be accessed by visiting the Company's restructuring website at www.toysrusinc.com/restructuring, calling the Company's Information Hotline, toll-free in the U.S. and Canada at 844-794-3476, or sending an email to toysrusinfo@PrimeClerk.com in the U.S. or to firstname.lastname@example.org in Canada. Court filings and other documents related to the court-supervised process in the U.S. are available on a separate website administered by the Company's claims agent, Prime Clerk, at https://cases.primeclerk.com/toysrus. Information about the CCAA proceedings is available on a separate site maintained by an independent Monitor at www.grantthornton.ca/ToysRUs. The Monitor also has a hot line at 416-777-7202 or 1-855-747-2648.
About Toys"R"Us, Inc.
Toys"R"Us, Inc. is the world's leading dedicated toy and baby products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 885 Toys"R"Us and Babies"R"Us stores in the United States, Puerto Rico and Guam, and in more than 810 international stores and over 255 licensed stores in 38 countries and jurisdictions. With its strong portfolio of e-commerce sites including Toysrus.com and Babiesrus.com, the company provides shoppers with a broad online selection of distinctive toy and baby products. Toys"R"Us, Inc. is headquartered in Wayne, NJ, and has nearly 65,000 employees worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Over the past three decades, the Company has given more than $100 million in product donations to children's charities. Since 1992, the Toys"R"Us Children's Fund, a public charity affiliated with Toys"R"Us, Inc., has also donated more than $130 million in grants. For more information, visit Toysrusinc.com or follow @ToysRUsNews on Twitter.
For more information please contact:
Lenders and Note Investors:
Matthew Finigan, Vice President, Treasurer at 973-617-5808 or Matthew.Finigan@toysrus.com
Amy von Walter, Executive Vice President, Global Communications & Customer Care at 201-815-9512 or Amy.vonWalter@toysrus.com
Michael Freitag / Meaghan Repko
Joele Frank, Wilkinson Brimmer Katcher
SOURCE Toys“R”Us, Inc.