Deals
Toys ‘R’ Us Vendors Cut Shipments on Bankruptcy Fear
- Retailer is said to be discussing debtor-in-possession funding
- Company has struggled to refinance debt due next year
Toys 'R' Us Seeks Bankruptcy Protection as Debt Mounts
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Some suppliers to Toys “R” Us Inc. have scaled back shipments to the retailer as it struggles to refinance debt and avoid a potential bankruptcy filing, according to people with knowledge of the matter.
The vendors are balking as Toys “R” Us continues talks with lenders over a new loan that would allow the company to stay open while it works out a recovery plan through bankruptcy proceedings, said the people, who asked not to be identified because discussions are private. The loan is being marketed by Lazard Ltd. to banks and existing creditors, said one of the people.