

Toys “R” Us is reportedly seeking $600 million to refinance 123 of its stores, primarily through a CMBS offering.
The news follows mixed Q2 results the company reported earlier this month, which came with an announcement that it had reached an agreement for the refinancing.
“We are pleased with our successful refinancing activities which will further strengthen the company’s financial foundation,” said Dave Brandon, chairman and CEO of Toys “R” Us, in the Q2 report. “This will enable us to continue to execute on our operational turnaround and compete in what continues to be a challenging retail environment.”
The company reported that consolidated same stores sales increased by 0.5 percent and operating earnings improved to $18 million from $15 million in Q2. That said, consolidated net sales and gross margin dollars declined, according to the report.
Despite mixed performance and several setbacks — the company has closed two New York City store landmarks, including its Times Square store, as well its F.A.O. Schwarz location on Fifth Avenue — it has avoided the mass closings some retailers have faced.
However, the retailer is said to be planning smaller footprints for its future stores, which is at odds with the big-box layout it became known for.