WAYNE, N.J., Oct. 24, 2017 /PRNewswire/ -- Toys"R"Us, Inc. ("the Company") today announced that the U.S. Bankruptcy Court for the Eastern District of Virginia entered a final order granting the company authority to access the full amount of its more than $3.0 billion in debtor-in-possession (DIP) financing. The Court also granted final approvals for the Company's "First Day Motions" intended to support the business, including continuing to pay employee wages and benefits, honoring customer programs and paying foreign vendors in full for all goods and services under normal terms.
Dave Brandon, Chairman and Chief Executive Officer, said, "We are continuing to provide customers outstanding service whenever, wherever and however they want to shop with us – just as we have for the past 70 years, and will continue to do for decades into the future. Our brick and mortar and web stores around the world are open and continuing to serve customers. As we approach the busy and ever-important holiday season, our teams are working diligently behind the scenes to ensure we can deliver on our commitment to be champions of play and a parent's best friend. Our team members are fired up and ready to reward the millions of customers who continue to put their trust in our iconic global brand."
Mr. Brandon continued, "During this highly competitive time of the year, our teams know that we have to be totally bold and different. I won't give away all our plans just yet but shoppers should know about our improved layaway program – with a daily lottery giveaway; Parents-only late night shopping events; and a Price Match Promise where we'll donate $1 to Toys for Tots for every price match we do over Holiday. There is simply no reason to go somewhere else – our focus is kids and families every day of the year – unlike some of our competitors who only play (pun-intended) a few weeks a year."
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.
Kirkland & Ellis LLP is serving as principal legal counsel to Toys"R"Us, Alvarez & Marsal is serving as restructuring advisor and Lazard is serving as financial advisor.
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.