Home / Others / Toys R Us receives several offers of $ 1bn for its unit in Asia

Toys R Us receives several offers of $ 1bn for its unit in Asia

  Sale of closing of Toys R Us

Image of copyright
Getty Images

Foot of image

Toys R Us is currently closing its operations in the United States and the United Kingdom

Toy giant giant Toys R Us has received offers of more than $ 1bn from potential buyers for a majority stake in its Asian business, a company lawyer said.

The US-based firm. UU It has operations around the world, but in September it declared bankruptcy in the United States amid growing concern about debt and competition from online retailers.

Toys R Us stores in the United States and the United Kingdom are closed.

However, its operations in Europe and Asia have been described as healthy.

Toys R Us attorney Joshua Sussberg of Kirkland and Ellis said at a US bankruptcy court hearing on Wednesday that several bidders were interested in buying an 85% stake in the Asian unit of the signature.

He also said that the firm was closing an agreement to sell its operations in Central Europe.

Mr. Sussberg was not immediately available for additional comments when contacted by the BBC.

Company in trouble

Before having problems in the USA. UU And the United Kingdom, the giant toy store had 1,600 stores in 38 countries.

The business was bought in 2005 by a group of investors, including private equity firms Bain Capital and KKR, who charged him with a debt of about $ 5 billion. The company was paralyzed by interest payments that sometimes reached $ 400 per year.

After a failed attempt at restructuring and bad sales in December in the United States, the company said in March that it would close its stores in the United States and Puerto Rico. [19659007] At the same time, its operation in the United Kingdom said it would also close its doors after attempts to find a buyer for its 100 retail stores failed and the company fell into management.

Bricks and mortar retailers in the US UU The United Kingdom, among other countries, has been facing increasing pressure from the continued increase in purchases on the Internet.

Attempts to sell Toys R Us stores in the United Kingdom were described as difficult, and an administrator in the UK told the BBC that any potential buyer would have difficulty resolving things, including obtaining use rights of Toys R Us. name, which is owned by the American parent company.

"In addition, there are different services provided within the group by different subsidiaries, so if you take a part, you have to make alternative arrangements or negotiate new terms," ​​Simon Thomas, of the Moorfields Advisory managers in the United Kingdom, said .

"Put all that together and it becomes very complicated."

Toys R US continues to operate more than 700 stores throughout Asia, including Japan, China and Singapore.


Source link