Toys “R” Us Withdraws Proposal for IPO

Toys “R” Us has withdrawn its proposal for an initial public offering, according to filings with the U.S. Securities and Exchange Commission. The big box toy retailer originally filed plans for an IPO on May 28, 2010 with the SEC. The company pulled the IPO on Friday due to “unfavorable market conditions, and the company’s recently announced executive leadership transition,” according to a news release.

The company had postponed its IPO in 2011 due to weak market conditions, and it has continued to struggle with weak sales. Last month, Gerald Storch announced he would step down as the Toys “R” Us CEO, while remaining as chairman of the board, after joining the company in 2006 following an acquisition by investment group Bain Capital Partners, Kohlberg Kravis Roberts & Co., and Vornado Realty Trust.

On Friday the company released its fourth quarter and full year financial results for 2012. In the fourth quarter, net sales were $5.8 billion, a decrease of $155 million compared to the prior year. For the full year, net sales were $3.5 billion, a decrease of 2.1 percent versus the prior year, driven by a comparable store net sales decline of 4.5 percent.

Toys R Us Files for IPO

Toys”R”Us, Inc. announced that it has filed a preliminary registration statement with the United States Securities and Exchange Commission relating to a proposed initial public offering of its common stock. It is anticipated that the offering will consist of newly issued shares sold by Toys”R”Us, Inc.; however, the number of shares to be offered and the price range for the offering have not yet been determined. The company expects to use the net proceeds it receives from the proposed offering primarily to pay down certain existing indebtedness, and the remaining net proceeds, if any, for general corporate purposes.
Goldman, Sachs & Co., J.P. Morgan, BofA Merrill Lynch, and Credit Suisse are serving as joint book-running managers and representatives of the underwriters for this proposed offering. Deutsche Bank Securities, Citi, and Wells Fargo Securities are also acting as joint book-running managers.