Some suppliers to Toys “R” Us Inc. have scaled back shipments to the retailer as it struggles to refinance debt and avoid a potential bankruptcy filing, Bloomberg News reported. The vendors are balking as Toys “R” Us continues talks with lenders over a new loan that would allow the company to stay open while it works out a recovery plan through bankruptcy proceedings. The loan is being marketed by Lazard Ltd. to banks and existing creditors. Toys “R” Us needs to find a financial solution quickly and resume shipments because the cash-strapped chain makes about 40 percent of its sales during the fourth-quarter holiday season, according to company filings. The toy merchant has been seeking to refinance $400 million of debt that comes due next year.
