Tuesday, March 13, 2018

Toys ‘R’ Us Stops Talking to Vendors

Sources associated with Toys ‘R’ Us suppliers told Bloomberg that payments from the company have stopped,

they can’t get anyone at Toys “R” Us to respond to questions [and the company] recently stopped negotiating settlements with vendors . . .

The Bloomberg story:

While nothing is definitive until it shows up in a bankruptcy court filing, this news is consistent with the recent narrative of a company on the verge of liquidation. There were rumors on Sunday that a liquidation plan would be filed on Monday, and that did not happen, but if a retailer is cutting off its suppliers, it cannot carry on for much longer than another week.

Update: Lauren Hirsch at CNBC writes of a Toys ‘R’ Us liquidation, “The retailer could file as soon as the end of Wednesday.”