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Toys ‘R’ Us (Canada) announces completion of sale to Fairfax Financial
By Caroline Salls
Pittsburgh, June 1 – Toys “R” Us (Canada) Ltd. said in a Friday news release that the acquisition of its business by Fairfax Financial Holdings Ltd. has been completed.
As a result of the acquisition, Toys “R” Us Canada said it is now a Canadian-owned and operated business employing more than 4,000 Canadians and the only exclusive coast-to-coast business with more than 80 locations dedicated to kids and babies.
The company said all customer programs, such as Baby Registry, “R”Club loyalty and wish list, are running as normal, and gift cards purchased in Canada can be redeemed anytime online and in any store location across the country.
Last month, Toys “R” Us, Inc. obtained approval from the U.S. Bankruptcy Court for the Eastern District of Virginia for the dismissal of the Chapter 11 bankruptcy case of its Toys Canada debtor.
The case will be automatically dismissed upon delivery of a termination certificate after the closing of the company’s Canadian equity sale.
As previously reported, the base purchase price for the Canadian equity sale is $300 million. According to the purchase agreement, the final price will be the base price, minus an amount by which estimated closing date working capital is less than targeted working capital, plus the amount the closing date working capital is greater than the targeted working capital, plus estimated closing date cash, minus a debtor-in-possession debt closing amount, minus 5% of specified intercompany debt.
Toys “R” Us is a Wayne, N.J., toy retailer. The company filed for bankruptcy on Sept. 19, 2017 under Chapter 11 case number 17-34665.
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