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Toys R Us US bankruptcy filing returns spotlight to secondary retail and CMBS exposure

Confirmation that Toys R Us, the famous toy retailer with 1,600 stores in 38 countries, has filed for bankruptcy has sparked renewed questions about the health of bricks and mortar retailers in the internet age, and in turn has implications for billions of pounds of CMBS loans exposed to Toys “R” US or Babies “R” US stores including 2013’s £263m UK Toys “R” US CMBS.
CoStar News
September 20, 2017 | 7:30 P.M.

Yesterday Toys R Us said that while it has filed for Chapter 11 bankruptcy, the majority of its stores remain profitable and it has secured a new $3.1bn operating loan from a JP Morgan Chase & Co-led syndicate which, subject to court approval, it will invest in stabilising operations, refreshing stores and reopening supply channels, all of which mean it does not plan to close stores.

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