Toys R Us facing financial struggle

The owners of Toys R Us are expected to appoint the finance firm Cairn Capital to help in the restructuring or refinancing of debts of 400 million, according to The Sunday Times.

The toy specialist is considering its options, including adding new equity and extending debt repayment deadlines. The current debts are secured against the UK property portfolio of 29 stores and have a deadline of 2013.

Toys R Us was bought by a US consortium in 2006 for 4bn. During the process, the UK stores were organised into a seperate company which were then leased back to the retailer.

Story originally published on Toy News