Australian-listed children’s goods retailer Toys ‘R’ Us (TOY) has announced plans to exit the UK market following negotiations with existing financiers.

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In a statement, the company said it had been working with existing financiers, including TRUK, with respect to the company’s obligations under its existing lending arrangements. As a result, the existing debt financier has agreed to advance $1.5 million in loan facilities to the company.

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The retailer will also restructure its operations in order to refocus its working capital on Australia and New Zealand and reduce its operating costs. It has reached an agreement in principle with TRUK to facilitate an “orderly transition and transfer” of its licences to TRUK – which will release $7 million in working capital requirements, and reduce operating costs by $6 million and debt to TRUK by $2.9 million. The transition is expected to be complete by January 31, 2024.

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Sources: https://insideretail.com.au/uncategorized/toys-r-us-to-exit-uk-market-focus-on-restructuring-operations-202308