Toys R Us Withdraws IPO Proposal
Toys R Us Inc formally withdrew its initial public offering proposal last Friday. The decision puts to rest the uncertainty on the world's largest toy retailer's future activities.
In the same announcement, it reported disappointing revenue results in last year's holiday season. According to Toys R Us spokesperson Kathleen Waugh, in a statement to Reuters, "Toys R Us determined not to pursue the IPO due to unfavorable market conditions and executive leadership transition."
No updates were provided as to the search for its new CEO, after Gerald Storch stepped down as CEO but remains Chairman of the board. As for the IPO withdrawal, Waugh assured that there will be no effect as to the day-to-day operations of the toy retailer.
Toys R Us was privatized in 2005 by KKR & Co LP, Vornado Realty Trust and Bain Capital for a price tag of US$6.6 billion. It had planned an IPO back in 2011 but again due to weak market conditions, the retailer forced to postpone the offering.