The company is already working with the financial advisory firm Lazard and successfully refinanced some of its debt just a year ago. However, with the roster of retail bankruptcies growing, many lenders are becoming less accommodating.
"As we previously discussed on our first quarter earnings call, Toys ‘R’ Us is evaluating a range of alternatives to address our 2018 debt maturities, which may include the possibility of obtaining additional financing," Toys R Us spokeswoman Amy von Walter said in a statement on Wednesday. "We expect to provide an update about these activities, as well as the many initiatives underway to provide an outstanding customer experience in our global retail locations and webstore during the holiday season, during our second quarter earnings call."
The first sign of real trouble was back in 2015 when Toys ‘R’ Us closed its destination flagship in Times Square to save money on rent. Just last month though, the retailer announced plans for a 35,000-square-foot pop-up in the same neighborhood for the holiday season.
Following a disappointing 2016 holiday season, where same store sales dropped 3.4 percent, the retailer reported a net loss of $164 million in the first fiscal quarter of 2017. Toys ‘R’ Us will release is second quarter earnings on Sept. 26.
Toys R Us is the only chain of dedicated toy retailers left in the USA.
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