Toys R Us buyers face £120m price tag

by TnP Staff
Published: 12 February 2018, 10:51
Quick Link: www.toysnplaythings.co.uk/qapvo

Toys R Us buyers face £120m price tag

Reports suggest potential buyer of the troubled toy retailer would need to stump up £120m to meet payment deadlines and overhaul UK operation

 

Potential buyers of Toys R Us's UK operation would face a price tag of around £120m, according to recent reports in The Telegraph.

The news outlet's sources say an immediate cash injection of £50m would be needed to pay the group of bank lenders that have given aid to its parent company in the US by the end of the month.

A further £70m would be needed to get Toys R Us's proposed five-year plan underway as it aims to tackle its main competition in the UK - largely Amazon and Argos. The money would pay for a revamp of its stores and help the retailer offer more competitive pricing.

As well as modernising stores, the retail group also wants to cut the floorspace of its 79 stores - the number that remain after a wave of closures - by more than a third. This would be followed by the opening of a new group of around 30 smaller "Express" stores to serve regions of the country left without a Toys R Us, and money would also be invested in increasing the retailer's online retail offering.

The news follows reports from Sky News last Thursday that Hilco - a restructuring firm that helped pull HMV back into the black in 2013 - was one of a small number of bidders eyeing Toys R Us, though analysts speaking to The Guardian said such firms would likely wait for the retailer to fall into administration.