Toys R Us has just managed to secure $3.1 billion in financing, a big vote of investor confidence for the toy and game retail brand which had recently declared bankruptcy.
According to reports from Chain Store Age, the financing will come from a group of lenders led by JPMorgan Chase and comes as the company prepares for the annual holiday rush. Those new funds, according to Toys R Us leadership, will go toward investing in the renovation and modernization of store locations across the nation, with a particular focus on improvements to layout, lighting and usability for customers.
The retailer has also announced its plans to level up its eCommerce efforts “to better reflect its brand, promote the hottest toys and provide improved delivery capabilities so Toys R Us can effectively compete in the online shopping space,” the article said.
Toys R Us officially filed for Chapter 11 bankruptcy on Sept. 18, 2017, with an overall goal of restructuring its operations and substantial outstanding debt, Chain Store Age reports. Its Canadian subsidiary was granted protection in parallel proceedings under the Companies' Creditors Arrangement Act (CCAA).
With the newly invested funds in place, it seems there will be a Christmas this year at the nation's largest specialty retailer of toys and games for children. Toys R Us is reportedly hiring approximately 12,000 seasonal workers to staff its stores and fulfillment centers. It has also opened a specialized concept shop for the holiday season in New York City's Times Square, a separate Chain Storage Age news report noted.
“The Times Square holiday shop reunites our brand with an iconic New York destination which we are thrilled about,” said Dave Brandon, chairman and CEO of Toys R Us, Inc. “More importantly, the store offers customers a host of products tailored to the needs of city dwellers and visitors — all in [the] interest of bringing play to kids and families around the world!”