The Toy Association Informs Members of Updates to Toys“R”Us Bankruptcy Proceedings
November 21, 2017 | The Toy Association recently issued a Member Bulletin to manufacturer members detailing the latest updates and filings related to the Toys“R”Us bankruptcy proceedings.
Included in the bulletin is information regarding the company’s recently filed motion for authority to settle de minimis claims (subsequently approved by the court) and the rescheduling of the Toys“R”Us creditors’ hearing to December 6. The company’s unsecured creditors’ committee is also seeking court approval to hire counsel and financial advisors. Toys“R”Us, as expected, filed its statement of financial affairs this month.
“We are continuing to monitor the status of the Toys“R”Us restructuring process for our members,” says Paul Vitale, The Toy Association’s executive vice president of finance and operations. “While we cannot provide specific advice on this matter, we provide resources for manufacturers contemplating next steps, including a dedicated section on our website for Toys“R”Us news that is continually updated and a recent webinar addressing steps to take when a customer is in financial trouble.”
Members are invited to view a recording of The Toy Association’s recent webinar, “Creditors’ Rights: Techniques to Minimize Risk and Maximize Recovery,” to learn available legal rights and remedies to help trade vendors minimize risk and maximize recovery when dealing with financially troubled customers.
Members will be kept apprised of any developments on this topic. Companies are encouraged to visit the Toys“R”Us Restructuring Information page on The Toy Association website or contact Paul Vitale with questions.