Toys R Us in talks to sell Canadian business as it closes U.S. stores


Murphy
#1
Without major restructuring, I believe that the 82 Canadian Toyz R Us will go the way of the parent US company. Bankruptcy, even if they manage to sell the Cdn holdings to MGA Entertainment.

Businesses that cannot adapt will die.
---

Toys R Us in talks to sell Canadian business as it closes U.S. stores
- IAN BICKIS, The Canadian Press

Toys "R" Us is in talks to sell its entire Canadian business as it works to shutter its 70-year-old U.S. operations, but analysts are skeptical about the future of the brick-and-mortar toy retailer's existing business model.

The company confirmed Thursday it is in "active discussions regarding a transaction that would result in an acquisition of the entire Canadian business," as the U.S. company seeks approval in its bankruptcy proceedings for the sale of its equity interest in the Canadian business.

The statement came a day after California-based toy company MGA Entertainment confirmed its CEO Isaac Larian and affiliated investors have made a bid for the Toys "R" Us Canada operations.

"Toys 'R' Us Canada is a good business," Larian said in a statement. "They run it efficiently, and have good leadership. At the right price, it makes economical sense."

https://www.theglobeandmail.com/repo...ticle38292661/
 
justlooking
#2
All 100 UK stores will close.
Expect the same for Canada.
 
Curious Cdn
#3
Quote: Originally Posted by justlooking View Post

All 100 UK stores will close.
Expect the same for Canada.

All of the US stores are closing too but apparently, the Canadian operation is the one of the three that is viable, efficient and profitable and they're trying to sell it off as a going concern as part of the larger bankruptcy. I suppose that the Canadian stores will close if the creditors in the US have a way of seizing their assets but if there is a suitor interested in operating them, the creditors may get more return if they keep the Canadian stores open. Then again there are vultures out there who may strip the Canadian operation bare, rather than running it.
 
justlooking
#4
The hunt for Toys R Us' missing millions: Investigators probe a 580m loan moved to a tax haven just months before the store went bust

  • Pensions officials previously probed the transaction but it remains a mystery
  • There will now be a full investigation of Toys R Us’s financial affairs
  • It is currently beginning to close all its 105 stores and make 3,000 staff jobless

Read more: The hunt for Toys R Us' missing millions | This is Money

 
spaminator
#5
Toys R Us founder dies days after store closures announced | Toronto Sun