As Toys R Us proceeds with plans to sell some of its business outside the U.S., the retailer has reportedly received bids of more than $1 billion for 85 percent of its business in Asia. The news comes as the retailer has indicated that it wants to keep profitable stores in Asia and Europe as it seeks to liquidate its operations in the U.K. and the U.S., Reuters reported.
The company’s lawyer, Joshua Sussberg, said during a hearing in U.S. Bankruptcy Court that the company was far along in talks with a buyer for its operations in Central Europe. And, in the U.S., Sussberg said the company’s real estate auctions, as well as its liquidation sells, were exceeding expectations. Those could bring in funds to help pay back creditors.
The retailer has over 700 remaining locations in the U.S., including those under the Babies R Us banner. If completed, the company’s liquidation would be among the largest in retail history since Sports Authority closed nearly 500 stores, The Wall Street Journal(WSJ) reported.
Since a leveraged buyout, Toys R Us has been burdened with over $5 billion in debt. Competition from eCommerce retailers such as Amazon and discount stores such as Walmart hasn’t helped the company either.
Beyond the U.S., Toys R Us Chief Executive David Brandon said the company may liquidate its operations in France, Spain, Poland and Australia. In addition, the company hopes to find a buyer for its Canadian business, which it plans to package with 200 stores in the U.S.
“We’re putting a for-sale sign on everything,” Brandon told employees, according to WSJ. “Frankly, all anyone has to do is offer one dollar more.”
The retailer plans to shutter its remaining 75 brick-and-mortar locations in the U.K. as the retailer was not able to find a buyer for their business there, Reuters reported. The news comes after Toys R Us planned to shutter about 200 more stores after a weak holiday sales season.