Toysrus Restructuring Debt with $400 Million Due by the End of this Year

Toysrus Restructuring Debt with $400 Million Due by the End of this Year

Wednesday, September 6th, 2017 8:38pm CDT

Category: Company News
Posted by: william-james88   Views: 14,559

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An article has surfaced on USA today saying that Toysrus is currently working with attorneys to deal with $400 million in debt due by the end of this year. While the article does go on to say that anything is possible in debt restructuring, including filing for bankruptcy, everything is pure speculating beyond the fact that they are looking at options to meet this deadline. More specifics on their total debt will be found below.

Also, it is important to remember that financial woes are not new for Toysrus and the company has persevered through a leveraged buyout already.

Here are a few chosen lines from the article going into detail for curious fans.

The toy giant is working with attorneys at the firm Kirkland and Ellis to deal with $400 million in debt due by the end of this year, according to a source familiar with the matter. Half of its debt obligation is due this fall, with the remaining $200 million due to be paid back near the end of December.
...
Toys "R" Us has dealt with a heavy debt load since it became a private company in 2005. Its private equity investors, KKR, Bain Capital, and Vornado Realty Trust, initially planned to recoup their investment with a public stock offering within three years, but that plan fell through when the Great Recession hit.

The owners brought in a new chief executive, Dave Brandon, in 2015 to helm a turnaround that could set the company up for either another attempt to go public, or a sale.
...
The toy store chain's long-term debt was $5 billion as of April 29. It had $701 million in liquidity, which included $400 million in committed lines of credit.


Transformers News: Toysrus Restructuring Debt with $400 Million Due by the End of this Year

Credit(s): USA Today


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Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1908965)
Posted by dragons on September 6th, 2017 @ 9:21pm CDT
That blows how is it possible they better selection for any toys out there Walmart sucks for toy shopping
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1908966)
Posted by william-james88 on September 6th, 2017 @ 9:35pm CDT
dragons wrote:That blows how is it possible they better selection for any toys out there Walmart sucks for toy shopping

They were deep in debt before the buyout, they just cant keep up with it. Not related to toy selection, more like poor investment strategies. The current owners have been interested in reselling the company ever since they bought it.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1908969)
Posted by shajaki on September 6th, 2017 @ 10:00pm CDT
This is #$@*ing heartbreaking. For the love of Primus, all Canada has is TRU and Wal-Mart!!!
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1908970)
Posted by WreckerJack on September 6th, 2017 @ 10:01pm CDT
I honestly haven't shopped at TRU in years, their toys always cost a couple bucks more than other places. Sometimes it would be worth it to go to TRU rather than drive around spending gas money because the higher price usually meant that harder to find toys would be on the shelf. I think that perhaps if they lowered their free shipping benchmark online I'd order from them. It would be sat to see TRU go, I really do like the experience of going to a toy shop and seeing all the figures. Here is to hoping they find a way to work better.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1908973)
Posted by william-james88 on September 6th, 2017 @ 10:19pm CDT
shajaki wrote:This is #$@*ing heartbreaking. For the love of Primus, all Canada has is TRU and Wal-Mart!!!

Depending on how it is all managed and organized, TRU Canada might be independent and still exist even if TRU USA files for bankruptcy. That subcompany could also be bought from the US corporation by investors, like it was done with A&W Canada. That could be a smart move since TRU Canada is far more profitable than TRU USA since we have far fewer competitors, as you said. Amazon.ca pales in comparison to what Amazon.com offers for toys.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1908979)
Posted by Ultimate Weapon1 on September 6th, 2017 @ 10:31pm CDT
I remember when I used to shop at TRU, but when they got to expensive for me I just turned to Walmart and online stores instead to search for transformers, hot wheels, star wars, etc. It will be sad to see them go because of the memories I have of going to TRU during my childhood, but I bet they make will it through.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1908984)
Posted by Terrsolpix on September 6th, 2017 @ 10:54pm CDT
Welp. I'm screwed. The only Walmart near me is incosnstant and target only carries 1 steps and deluxes. The majority of the year. If TRU closes I won't be able to get anything on a consistent basis without relying on e-shops.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1908988)
Posted by Hydrargyrus on September 6th, 2017 @ 11:22pm CDT
GUYS! Even if TRU explodes, toy companies (Hasbro) will still need to put their toys somewhere, and will therefore probably just make Wal-Mart have a better toy selection or something. Hasbro isn't just gonna go: 'Oh, our main outlet is gone. Guess we'll just keep that large percentage of toys at the factory. Or pack up and leave.'
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1908989)
Posted by Terrsolpix on September 6th, 2017 @ 11:34pm CDT
MagicDeath wrote:GUYS! Even if TRU explodes, toy companies (Hasbro) will still need to put their toys somewhere, and will therefore probably just make Wal-Mart have a better toy selection or something. Hasbro isn't just gonna go: 'Oh, our main outlet is gone. Guess we'll just keep that large percentage of toys at the factory. Or pack up and leave.'


Walmart won't pick it up. They still have wave 1 TR, they're probably dubious of Habsro's judgement since AoE and now TLK are shelfwarming HARD.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909000)
Posted by Jelze Bunnycat on September 7th, 2017 @ 1:43am CDT
Some of you seem to think Toys 'R Us going will go belly-up within the next few weeks. It will not in the short run.

Restructuring basically means getting one's finances in workable order by shuffling assets around, to free up capital needed to pay off a certain debt. It is true that could end up turning into the first step to bankruptcy, but that's just what it is: a first step. No need to panic just yet, but it would be prudent to keep tabs on them, especially when the final due date in December has come and gone. If they're unable to pay off those debts, things will get dicey for sure, but it will not be over until Chapters get flung around, especially Chapter 7.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909001)
Posted by Terrsolpix on September 7th, 2017 @ 1:47am CDT
Going off of what Jelze said, do be sure to support ToyRUs if possible. Considering MP-10? Don't get the eBay auction, try to find it in stores. Wanting wave 2 TLK voyagers? Skip Walmart and go to ToysRUs. Found Infernocus but are on the fence? Strike whole you can because there might not be a place to get him come Christmas.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909002)
Posted by Terrsolpix on September 7th, 2017 @ 1:48am CDT
Terrsolpix wrote:Going off of what Jelze said, do be sure to support ToyRUs if possible. They're restructuring, and every purchase can only help balance everything. Considering MP-10? Don't get the eBay auction, try to find it in stores. Wanting wave 2 TLK voyagers? Skip Walmart and go to ToysRUs. Found Infernocus but are on the fence? Strike whole you can because there might not be a place to get him come Christmas.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909030)
Posted by Cyber Bishop on September 7th, 2017 @ 7:01am CDT
JelZe GoldRabbit wrote:Some of you seem to think Toys 'R Us going will go belly-up within the next few weeks. It will not in the short run.

Restructuring basically means getting one's finances in workable order by shuffling assets around, to free up capital needed to pay off a certain debt. It is true that could end up turning into the first step to bankruptcy, but that's just what it is: a first step. No need to panic just yet, but it would be prudent to keep tabs on them, especially when the final due date in December has come and gone. If they're unable to pay off those debts, things will get dicey for sure, but it will not be over until Chapters get flung around, especially Chapter 7.



Thank you, no need to panic yet peeps.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909033)
Posted by Aimless Misfire on September 7th, 2017 @ 7:18am CDT
Terrsolpix wrote:Going off of what Jelze said, do be sure to support ToyRUs if possible. Considering MP-10? Don't get the eBay auction, try to find it in stores. Wanting wave 2 TLK voyagers? Skip Walmart and go to ToysRUs. Found Infernocus but are on the fence? Strike whole you can because there might not be a place to get him come Christmas.



Do you have any idea how many times I went to Toys R Us & left empty handed because they NEVER have anything worth a damn? 99.99% of the time. And now you think I'm going to support their sorry ass store? I want all the gas money I wasted back.

I'm dying to get that Primus repaint but they're charging $150??? Primus & Trypticon sitting right next to each other both for $150? They're friggin insane! 8-} I'm not supporting insanity like that. People don't like being ripped-off & they're basically coming right out & saying "Hi, we're ripping you off. You're totally stupid if you actually pay this price".
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909038)
Posted by karyuudo on September 7th, 2017 @ 7:46am CDT
The sad reality is that kids aren't playing with toys like they used to. Never mind Transformers, but pretty much everything. With Android and IPad tablets all over the market, kids have something else to occupy their time with now.

There's also the other issue with the shrinking child population out there. Most folks who buy toys into their adulthood started because they did so as a kid. If there's no kids to buy your toys, who's going to be your market?
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909040)
Posted by Dr. Caelus on September 7th, 2017 @ 8:07am CDT
karyuudo wrote:There's also the other issue with the shrinking child population out there.


I'm not seeing much evidence that's the case. It declined between 2010 and 2011, was then remarkably stable until 2016, and is now projected to grow:

https://www.childstats.gov/americaschil ... s/pop1.asp
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909041)
Posted by karyuudo on September 7th, 2017 @ 8:33am CDT
Caelus wrote:
karyuudo wrote:There's also the other issue with the shrinking child population out there.


I'm not seeing much evidence that's the case. It declined between 2010 and 2011, was then remarkably stable until 2016, and is now projected to grow:

https://www.childstats.gov/americaschil ... s/pop1.asp


Perhaps due to immigration?
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909042)
Posted by Dr. Caelus on September 7th, 2017 @ 8:42am CDT
karyuudo wrote:
Caelus wrote:
karyuudo wrote:There's also the other issue with the shrinking child population out there.


I'm not seeing much evidence that's the case. It declined between 2010 and 2011, was then remarkably stable until 2016, and is now projected to grow:

https://www.childstats.gov/americaschil ... s/pop1.asp


Perhaps due to immigration?


Children are children.

Even so, though, while the number of immigrants in the US has increased by about 3.5 million since 2010, their 'share' of the US population has only increased by about 0.6%. (MigrationPolicy.org)

If that's offsetting a declining domestic population, then I'd think it can't be much of a decline.
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909044)
Posted by DeathReviews on September 7th, 2017 @ 9:05am CDT
Sadly, I even reap companies sometimes. Hope I don't have to in this instance though. Because seriously - how many toy stores are out there anymore? All the toy stores that used to be in malls (like Kay-Bee Toys) I had to reap a long time ago. I didn't like doing that either. Telling everyone to shop TRU will only help for a while, because how long would that endure? Re-organizing is best. If that means they have to close a few stores here and there, so be it. So long as they can remain viable as a company in general. Sometimes you have to cut off an arm to save the rest of the body...
Re: Toysrus Restructuring Debt with $400 Million Due by the End of this Year (1909046)
Posted by william-james88 on September 7th, 2017 @ 9:16am CDT
Terrsolpix wrote:Going off of what Jelze said, do be sure to support ToyRUs if possible. Considering MP-10? Don't get the eBay auction, try to find it in stores. Wanting wave 2 TLK voyagers? Skip Walmart and go to ToysRUs. Found Infernocus but are on the fence? Strike whole you can because there might not be a place to get him come Christmas.


All these problems TRU is having are at the internal level, with investments that were too late or not paying off. Buying a toy now wont change anything. The company indebted itself greatly at the begining of the new millenia and were then sold to investors who had no clue how to run a retail giant and had only bought it to sell it later at a profit instead of long term growth. It was a short term strategy that didnt pay off and instead indebted them more.

karyuudo wrote:There's also the other issue with the shrinking child population out there. Most folks who buy toys into their adulthood started because they did so as a kid. If there's no kids to buy your toys, who's going to be your market?


Child population has been stable globally for years now. Plus Hasbro keeps reporting record healthy numbers with the low box office yield of The Last Knight not affecting toy sales.

Everything is pointing to there being a problem with TRU themselves and their management, not the toy industry.

karyuudo wrote:Perhaps due to immigration?

Toysrus and Hasbro are both worldwide brands, so immigration is a moot point.

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