Amazon.com Widgets Toys R Us Seeks Bankruptcy Protection 9/2017
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Toys R Us Seeks Bankruptcy Protection

WAYNE, NJ – September 18, 2017 – Toys“R”Us, Inc. today announced that the Company and certain of its U.S. subsidiaries and its Canadian subsidiary have filed for Chapter 11 . In addition, the Company’s Canadian subsidiary today intends to seek protection as well.

The Company’s operations outside of the U.S. and Canada, including its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings.

The Company’s approximately 1,600 Toys“R”Us and Babies“R”Us stores around the world are continuing to operate.

The Company has received a commitment for over $3.0 billion in debtor-in-possession (“DIP”) financing from various lenders, including a JPMorgan-led bank syndicate and certain of the Company’s existing lenders, which, subject to Court approval.

In conjunction with the Chapter 11 process in the U.S., the Company has filed a number of customary motions with the bankruptcy court seeking authorization to support its operations during the restructuring process and ensure a smooth transition into Chapter 11 without disruption, including authority to continue payment of employee wages and benefits, honor customer programs, and pay vendors and suppliers in the ordinary course for all goods provided on or after the filing date.

Additional information can be accessed by visiting the Company’s restructuring website at www.toysrusinc.com/restructuring, calling the Company’s Information Hotline, toll- free in the U.S. and Canada at (844) 794-3476, or sending an email to toysrusinfo@PrimeClerk.com. Court filings and other documents related to the court- supervised process in the U.S. are available on a separate website administered by the Company’s claims agent, Prime Clerk, at https://cases.primeclerk.com/toysrus. Information about the CCAA proceedings will be available on a separate site maintained by an independent monitor. The appointment of the monitor and address of the monitor website are expected to be announced later today.

Kirkland & Ellis LLP is serving as principal legal counsel to Toys“R”Us, Alvarez & Marsal is serving as restructuring advisor and Lazard is serving as financial advisor.

Court Documents--First Day Motions: https://cases.primeclerk.com/toysrus/Home-DocketInfo?DocAttribute=3462&DocAttrName=FirstDayMotions


Press Release:

Files Voluntary Chapter 11 Petitions in U.S. and Intends to Seek Protection under CCAA in Canada;
Operations Outside U.S. and Canada Not Included in Proceedings

Toys“R”Us and Babies“R”Us Stores and Web Stores across the World are Open and
Continuing to Provide World-Class Experiences for Customers

Restructuring Process Expected to Enhance Financial Flexibility for Investments in Growth Initiatives

Company Receives Commitment of Over $3.0 Billion in Debtor-in-Possession Financing to Support Operations

WAYNE, NJ – September 18, 2017 – Toys“R”Us, Inc. (“the Company”) today announced that the Company and certain of its U.S. subsidiaries and its Canadian subsidiary have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, VA. In addition, the Company’s Canadian subsidiary today intends to seek protection in parallel proceedings under the Companies’ Creditors Arrangement Act (“CCAA”) in the Ontario Superior Court of Justice. The Company intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents.

The Company’s operations outside of the U.S. and Canada, including its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings.

The Company’s approximately 1,600 Toys“R”Us and Babies“R”Us stores around the world – the vast majority of which are profitable – are continuing to operate as usual, providing customers with great service and a curated assortment of merchandise in the toy and baby categories. Customers can also continue to shop for the toy and baby products they are looking for online on the Company’s newly launched www.toysrus.com and www.babiesrus.com web stores. Customers should expect the Company’s loyalty programs, including its Rewards“R”Us, Geoffrey’s Birthday List and Babies“R”Us Registry, to continue as normal.

“Today marks the dawn of a new era at Toys“R”Us where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” said Dave Brandon, Chairman and Chief Executive Officer. “Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide. We are confident that these are the right steps to ensure that the iconic Toys“R”Us and Babies“R”Us brands live on for many generations.”

Mr. Brandon continued, “As the holiday season ramps up, our physical and web stores are open for business, and our team members around the world look forward to continuing to put huge smiles on children’s faces. We thank our vendors for their ongoing support through this important season and beyond. We also appreciate the strong support our investors have provided over time and the constructive role they are playing in this process that will allow us to create a brighter future for our company. And as importantly, we thank our team members in advance for their hard work and dedication to serving the millions of customers who will shop with us this holiday.”

The Company has received a commitment for over $3.0 billion in debtor-in-possession (“DIP”) financing from various lenders, including a JPMorgan-led bank syndicate and certain of the Company’s existing lenders, which, subject to Court approval, is expected to immediately improve the Company’s financial health and support its ongoing operations during the court-supervised process. Toys“R”Us is committed to working with its vendors to help ensure that inventory levels are maintained and products continue to be delivered in a timely fashion.

In conjunction with the Chapter 11 process in the U.S., the Company has filed a number of customary motions with the bankruptcy court seeking authorization to support its operations during the restructuring process and ensure a smooth transition into Chapter 11 without disruption, including authority to continue payment of employee wages and benefits, honor customer programs, and pay vendors and suppliers in the ordinary course for all goods provided on or after the filing date.

Additional information can be accessed by visiting the Company’s restructuring website at www.toysrusinc.com/restructuring, calling the Company’s Information Hotline, toll- free in the U.S. and Canada at (844) 794-3476, or sending an email to toysrusinfo@PrimeClerk.com. Court filings and other documents related to the court- supervised process in the U.S. are available on a separate website administered by the Company’s claims agent, Prime Clerk, at https://cases.primeclerk.com/toysrus. Information about the CCAA proceedings will be available on a separate site maintained by an independent monitor. The appointment of the monitor and address of the monitor website are expected to be announced later today.

Kirkland & Ellis LLP is serving as principal legal counsel to Toys“R”Us, Alvarez & Marsal is serving as restructuring advisor and Lazard is serving as financial advisor.

About Toys“R”Us, Inc.
Toys“R”Us, Inc. is the world’s leading dedicated toy and baby products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 885 Toys“R”Us and Babies“R”Us stores in the United States, Puerto Rico and Guam, and in more than 810 international stores and over 255 licensed stores in 38 countries and jurisdictions. With its strong portfolio of e-commerce sites including Toysrus.com and Babiesrus.com, the company provides shoppers with a broad online selection of distinctive toy and baby products. Toys“R”Us, Inc. is headquartered in Wayne, NJ, and has nearly 65,000 employees worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Over the past three decades, the Company has given more than $100 million in product donations to children’s charities. Since 1992, the Toys“R”Us Children’s Fund, a public charity affiliated with Toys“R”Us, Inc., has also donated more than $130 million in grants. For more information, visit Toysrusinc.com or follow @ToysRUsNews on Twitter.

For more information please contact:

Lenders and Note Investors:
Matthew Finigan, Vice President, Treasurer at 973-617-5808 or Matthew.Finigan@toysrus.com

Media:
Amy von Walter, Executive Vice President, Global Communications & Customer Care at 201-815-9512 or Amy.vonWalter@toysrus.com

press@toysrus.com
973-617-5900

Michael Freitag / Meaghan Repko
Joele Frank, Wilkinson Brimmer Katcher
Tel: (212) 355-4449

FAQ FROM TOYS R US WEBSITE 9/18/17 Additional information can be accessed by visiting the Company’s restructuring website at www.toysrusinc.com/restructuring

1. Why did Toys“R”Us take this action now?

• Our business and overall ability to win have been significantly impacted by the costs associated with the $5 billion of debt on our balance sheet. This debt has held us back from making the investments we need to compete effectively in what has become an increasingly challenging and rapidly changing retail marketplace worldwide.

• After much consideration, the Company and certain of our subsidiaries proactively and voluntarily filed for Chapter 11 in the U.S. and commenced parallel proceedings under CCAA in Canada.

• The Company is taking this action in order to implement a financial restructuring as a deliberate and decisive step in the process to put us on a successful track for the future.

• Through this process, we expect to restructure our long-term debt and use these resources to reinvest in our business, continue to improve the customer experience in our stores and online and strengthen our competitive position.

• The Company’s operations outside of the U.S. and Canada, which include operations in Asia, Australia and Europe, are not part of the Chapter 11 filings or CCAA proceedings and are not subject to the Court-supervised processes.

2. Will Toys“R”Us continue normal operations?

• Yes. Our operations are continuing as usual. The Company’s stores around the world are open and our web stores and other online platforms will remain up and running, providing customers great service and a curated assortment of merchandise in the toy and baby categories.

• Through this process, we expect to restructure our long-term debt and use those resources to reinvest in our business, improve the customer experience and strengthen our competitive position.

3. Does Toys“R”Us have sufficient liquidity to meet its obligations?

• Yes. We have received commitments for over $3.0 billion in new financing that will help enable us to meet our business obligations during the financial restructuring process.

• We value the important relationships that we have developed with our vendors, and we intend to work closely with you throughout this process and in the future.

4. Will Toys“R”Us continue to order goods and services from its vendors?

• Yes. Our stores around the world are open and our web stores are up and running, and we are relying on you to continue providing the products and services we need under the same terms.

• With your support, we expect to achieve a successful outcome for our company, business partners and other stakeholders this holiday and well into the future.

5. Will vendors be paid for goods or services provided on or after the filing date?

• Yes. We intend to pay vendors for all goods and services received on or after the filing date.

• Invoices for goods and services provided on or after the filing date should be submitted through the typical accounts payable channels, and payments will be processed in accordance with contract terms, if applicable.

6. Will vendors be paid for goods and services delivered prior to the filing date?

• Payment for pre-filing amounts owed varies based on the entity to which you supply goods and services: For vendors to U.S. entities: Under U.S. bankruptcy law, unpaid debts for goods and services provided to Toys“R”Us prior to the filing date, also known as “pre-petition claims,” generally cannot be paid. n If you believe you have a pre-petition claim or an administrative claim for goods and services provided to Toys“R”Us, you may need to file a proof of claim with the Bankruptcy Court to be eligible for payment on your claim or otherwise consult an attorney for guidance. n Information about the claims process will be made available at a later date. n If you have any questions, you can call our information hotline toll-free at (844) 794-3476 or email toysrusinfo@PrimeClerk.com. o For vendors to Toys“R”Us Canada: Unpaid debts for goods and services provided to Toys“R”Us Canada, prior to commencing proceedings under CCAA, generally cannot be paid. n If you believe you have a pre-petition claim or an administrative claim for goods and services provided to Toys“R”Us Canada, you may need to file a proof of claim with the Bankruptcy Court to be eligible for payment on your claim or otherwise consult an attorney for guidance. n Information about the claims process will be made available at a later date. n If you have any questions, you can call our information hotline toll-free at (844) 794-3476 or email toysrusinfo@PrimeClerk.com. o For vendors to Asia, Australia and Europe entities: The Company’s subsidiaries in Asia, Australia and Europe are not part of the Chapter 11 filings or CCAA proceedings. Toys“R”Us will pay vendors for all goods and services provided tothese entities in the normal course.

7. How do I file a proof of claim?

• The Company’s claims agent, Prime Clerk, will be providing the appropriate forms once a deadline for filing claims has been set. Proof of claim forms and other information about the claims process will be available at https://cases.primeclerk.com/toysrus.

8. How can I obtain more information?

• Vendors or business partners can call the Information Hotline, toll-free from the following countries, or email toysrusinfo@PrimeClerk.com. o U.S. or Canada: 844-794-3476 o Germany: 0800-182-9016 o UK: 800: 0-800-014-8914 o Spain Mobile Enabled: 900-984918 o Portugal Mobile Enabled: 800-180-778 o France: 805: 0805-080337 o Poland: 0-0-800-141-0322 o Australia 1300: 1-300-009-390 o Austria Mobile Enabled: 0800-802290 o Switzerland Mobile Enabled: 0800-562-556 o China: 400-120-4011

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