Toys ‘R’ Us Receives Bids of Over $1 Billion for Asian BusinessBy
Toys “R” Us Inc. has received multiple bids of over $1 billion from prospective buyers of its Asian business, a lawyer for the company said Wednesday in bankruptcy court.
The offers are for the 85 percent stake Toys “R” Us owns of its Asian unit, and would include intellectual property, according to the lawyer, Joshua Sussberg from Kirkland & Ellis.
Toys “R” Us has been working with Lazard Ltd. to solicit bids for its stake in the Asian unit from potential buyers including Chinese private equity firms, people with knowledge of the matter have said. Fung Group, the local partner that owns 15 percent of the Asian venture, has also been in talks to acquire the stake, Bloomberg News reported in February.
Toys “R” Us is in the middle of winding down its U.S. operations, after a failed attempt to restructure the business in bankruptcy and keep it operating. The company filed for bankruptcy in September, hoping to shed debt and turn around the business, but after dismal sales during the holiday season, it opted to liquidate instead.
The retailer said it has received a commitment from noteholders for $80 million in incremental financing to boost liquidity and support its Asian and Central European operations. The company said in a statement Wednesday the financing provides greater flexibility to operate and build inventory for the 2018 holiday season.
The case is In re TRU-SVC, 17-34659, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond).