Value Implications of Toys R Us Bid Rejection

An auction for the Toys R Us Canadian assets is scheduled to be held on Monday, with Fairfax bidding for the unit as a going concern at $300 million CAD and likely sitting as the stalking horse.  The US stores, it appears, will be liquidated as announced in March. Isaac Larian’s bid for the US business was rejected by the Company as unqualified. A short analysis of the liquidation value of Toys R Us US assets reveals the reason. Read More

Tops Bankruptcy

On February 21, 2018, Tops Holding II and its subsidiaries filed for bankruptcy. Tops is a grocery chain in the northeast with 169 owned stores and five franchise stores in upstate New York, northern Pennsylvania, and Vermont. 2017 audited financials showed a net loss of $80M on revenue of $2.5B ($14.3M per store, or $275k per store per week). Tops stores average about 45k sqare feet. Both size and sales are right on the per store industry average. Read More

Toys r no longer US

Toys R Us will liquidate

This one is unraveling in a hurry.

Sadly but not unexpectedly, Bloomberg is reporting that Toys R Us (“TRU”) is prepping to liquidate its US stores completely.  This news comes on the heels of two prior announcements of store liquidations.  Read More