DW – March 15, 2018
Toys ‘R’ Us on Thursday announced it would close all its US stores after being unable find a buyer or reach a deal to restructure billions of dollars in debt.
“This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years,” CEO Dave Brandon said in a statement.
“I am very disappointed with the result, but we no longer have the financial support to continue the company’s US operations,” he added.
Toys ‘R’ Us filed for bankruptcy protection – called Chapter 11 in the US – in September and was already in the process of closing one-fifth of its stores in an attempt to save the business.
The company had huge debts as the result of a $6.6-billion (€5.3 billion) leveraged buyout in 2005 by a consortium that included the KKR Group and Bain Capital. Toys ‘R’ Us was taken private, with a view to take it back to the stock market after a restructuring period.
The closure of the 70-year-old retailer in the US will affect some 30,000 employees.