Toys ‘R’ Us Canada gets lifeline
An investment firm has submitted a $236.8 million “stalking-horse” bid (C$300) to buy Toys “R” Us’ Canadian operations.
The offer, submitted by Fairfax Financial Holdings Ltd., comes before the court-approved bankruptcy auction on April 23 in New York. Fairfax was selected by the retailer as the stalking horse for the sale of its 82-store Canadian unit and will acquire the division if it is not outbid.
If the deal goes through, after the takeover, Fairfax would be able to continue operating Toys “R” Us stores in Canada under the company’s existing name.
On April 13, toy tycoon Isaac Larian, CEO of MGA Entertainment, put in a formal bid of $675 million to buy 274 U.S. Toys “R” Us’ stores. The retailer rejected Larian’s offer, reportedly saying it was low. Larian also put in a $215 million offer to buy Toys “R” Us’ Canadian operations.
The offer, submitted by Fairfax Financial Holdings Ltd., comes before the court-approved bankruptcy auction on April 23 in New York. Fairfax was selected by the retailer as the stalking horse for the sale of its 82-store Canadian unit and will acquire the division if it is not outbid.
If the deal goes through, after the takeover, Fairfax would be able to continue operating Toys “R” Us stores in Canada under the company’s existing name.
On April 13, toy tycoon Isaac Larian, CEO of MGA Entertainment, put in a formal bid of $675 million to buy 274 U.S. Toys “R” Us’ stores. The retailer rejected Larian’s offer, reportedly saying it was low. Larian also put in a $215 million offer to buy Toys “R” Us’ Canadian operations.