U.S. holiday sales at Toys R Us were down 4.7% vs. the previous year, according to the Bergen Record, another round of bad sales news at the toy retailing giant, which just reported a $605 million loss for the quarter ended November 2nd (see "Big Loss for Toys R Us"). That compares to a 4.5% decline in 2012.
Declines in the value of Toys R Us debt were already raising red flags in November (see "Last Chance for Toys R Us?"), and are continuing. The company is saddled with heavy debt from a leveraged buyout in 2005, and is facing brutal competition from both brick and mortar and online competitors.
Bloomberg has laid out the maturities of Toys R Us debt, which begin in 2016. On September 1 of that year, a $647 million term loan and $358 million of notes come due. Another $450 million in notes come due in August 2017; $400 million in bonds come due in October 2018; and a $975 million term loan comes due in August 2019. All are trading at a discount, reflecting a lack of confidence that the debt will be repaid.
The company’s credit line, which had around $500 million drawn on it as of early November, expires August 2015, and will have to be renewed.
Toys R Us has previously been able to roll over debt, but renewing its loans will get increasingly difficult because of the company’s operating losses.
Down 4.7%
Posted by ICv2 on January 14, 2014 @ 1:21 am CT
MORE SHOWBIZ
To Help with M&A, Loyalty Program, More
May 2, 2024
Skybound Entertainment has continued its executive hiring binge with the addition of two more senior executives, to help with mergers & acquisitions and a new loyalty program.
Vault's Headshell Imprint Launches with Graphic Novel and Merch
May 1, 2024
Vault Comics is launching its Headshell imprint with the graphic novel available in several deluxe editions as well as a line of tie-in merch.
MORE GAMES
First Game from Andrew Navarro's Company
May 2, 2024
Earthborne Rangers, the first game from the company of longtime Fantasy Flight Games executive Andrew Navarro, will be released to trade.
'Arcs,' from Leder Games
May 2, 2024
Leder Games will release Arcs , a new science fiction strategy game the designer of Root and Oath in October.