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Toys “R” Us Inc.’s U.S. business is in the midst of a wind-down, but its Asian business may have hope for survival.
The toy retailer has received multiple bids of more than $1 billion for a majority stake in its Asian business, the company’s bankruptcy attorney said in court on Wednesday.
Interested bidders are looking to take an 85% stake in the Asian business. Bankruptcy lawyer Joshua Sussberg of Kirkland & Ellis updated the court on the status of the company’s Asian business during a hearing in which the Toys “R” Us won approval to borrow an additional $80 million under its bankruptcy loans to support its healthy overseas operations.
Judge Keith Phillips of the U.S. Bankruptcy Court in Richmond, Va., gave interim approval for a higher debtor-in-possession loan, with a hearing for final approval set for April 27. The additional funds are needed to keep the toy retailer’s Central European and Asian units in business, lawyers for Toys ‘R’ Us and its creditors said at the hearing.
An expanded version of this report appears on WSJ.com.
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