Tags: toys r us | vendor | payment | liquidation

Toys 'R' Us Is Said to Have Missed Vendor Payments as Woes Mount

Toys 'R' Us Is Said to Have Missed Vendor Payments as Woes Mount
(Dreamstime)

Tuesday, 13 March 2018 04:23 PM

Toys “R” Us Inc. has missed payments to some suppliers in recent days as the U.S. division heads toward a likely liquidation, according to people with knowledge of the situation.

The retailer, which filed for bankruptcy in September, has stopped making the payments without providing an explanation, said the people, who asked not to be identified because the matter is private. Some of the people said they can’t get anyone at Toys “R” Us to respond to questions.

The company, which faces a $5 billion debt load, also recently stopped negotiating settlements with vendors on money owned before it filed for bankruptcy, some of the people said.

How a Toys ‘R’ Us liquidation threatens to curb toymakers’ innovation

The bleak situation lends evidence to the notion that Toys “R” Us is moving toward winding down its U.S. operations for good. Bloomberg reported last week that the retailer was making preparations for a liquidation of its domestic business.

The company has struggled to find a buyer or reach a debt restructuring deal with lenders, leaving it with few options, people familiar with the situation said at the time. A hearing in bankruptcy court is scheduled to be held on Thursday, after being delayed.

A representative for Wayne, New Jersey-based Toys “R” Us declined to comment.

© Copyright 2018 Bloomberg News. All rights reserved.

   
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Toys "R" Us Inc. has missed payments to some suppliers in recent days as the U.S. division heads toward a likely liquidation, according to people with knowledge of the situation.
toys r us, vendor, payment, liquidation
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2018-23-13
Tuesday, 13 March 2018 04:23 PM
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