Toys ‘R’ Us seeks approval to sell Canadian division
It appears likely Toys “R” Us’ operations in Canada will live to see another day.
The bankrupt retailer cancelled an auction for its assets in Canada and will seek approval from the court on Tuesday to sell them to Toronto-based Fairfax Financial Holdings Ltd. The investment firm had submitted a $236.8 million “stalking-horse” bid (C$300) to buy Toys “R” Us’ Canadian operations, which includes 82 stores.
According to U.S. bankruptcy court documents, the auction received no qualified bids other than the offer from Fairfax. U.S. toy tycoon Isaac Larian Isaac Larian, CEO of MGA Entertainment, previously put in a formal bid of $675 million to buy 274 U.S. Toys “R” Us’ stores, which the retailer rejected as being too low. Larian also had put in a $215 million offer to buy Toys “R” Us’ Canadian operations, but he dropped it after being outbid by Fairfax. Larian is now focused on sweetening his bid to buy 274 Toys “R” Us’ U.S. stores. Toys “R” Us is currently holding liquidation sales at its stores throughout the United States.
“We were about 10% below the winning bid for Toys “R” Us Canada. So that gives me hope for our U.S. bid,” he told CNN Money on Monday. “We have the financing we need. It’s now a matter of determining how much more we’re able to bid.”
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