Toys "R" Us casts shadow over toy sector
Rumors that Toys "R" Us is in danger of going bankrupt are weighing on major toymakers.
Citing sources close to the situation, CNBC reported Monday that the retailer could seek court-supervised relief from its debts as early as this week.
Toys "R" Us is owned by private equity firms Bain Capital and Kohlberg Kravis Roberts, as well as real estate investment firm Vornado Realty Trust (VNO).
Shares of toy manufacturer Mattel (MAT) fell 99 cents, or 6.2 percent, to close at $14.87 on Monday, while Hasbro (HAS) slipped 1.7 percent to $93.24.
Toys "R" Us must renegotiate $446 million in debt due before the end of its current fiscal year and is also on the hook for $2.2 billion in debt due the following year. As of last April, Toys "R" Us had more than $5 billion in long-term debt.
The company is scheduled to discuss its latest earnings on Sept. 26.
