Various types of retailers are bidding on the latest tranche of Toys 'R' Us stores up for sale. Successful bidders include Aldi, Ashley Furniture, Big Lots, Ollie’s Bargain Outlet and Raymour & Flanigan, according to CNBC. The amounts to be paid for the stores have not been disclosed.
Landlords such as Federal Realty Investment Trust and Urstadt Biddle Properties are reportedly interested too, says Bill Read, executive vice president of leasing, acquisitions and business development at Retail Specialists. “Most are around successful malls with high barriers to entry, solid demographics and high incomes," Read said. "The locations by ‘B’ and ‘C’ malls may take longer to sell or lease."
As of April, Toys 'R' Us had some 700 stores remaining in the U.S., including Babies 'R' Us stores.
Toys 'R' Us filed for Chapter 11 bankruptcy protection last fall, with some $5 billion in debt accrued when private-equity firms Bain Capital, KKR & Co. and Vornado Realty Trust took the company private in a $6.6 billion leveraged buyout in 2005.
In March the retailer announced plans to liquidate and sell all its U.S. stores.
By Brannon Boswell