Toys “R” Us has withdrawn its proposal for an initial public offering, according to filings with the U.S. Securities and Exchange Commission.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.