A judge signed off yesterday on a bankruptcy plan for Toys “R” Us that gives control of the brand to a group of hedge funds, and a fractional payment to suppliers, after a failed turnaround effort left 33,000 workers without jobs and all of its U.S. stores closed, WSJ Pro Bankruptcy reported. The once-giant toy seller filed for bankruptcy protection in September 2017, hoping to trim its chain of stores and survive. Hopes of a turnaround for the toy store chain were dashed when hedge funds owed about $1 billion pushed Toys into liquidation after a disastrous holiday season. The funds that controlled Toys “R” Us’s secured debt — Angelo, Gordon & Co., Franklin Mutual Advisers, Highland Capital Management, Oaktree Capital Management and Solus Alternative Asset Management — deny they are responsible for the failure of the turnaround effort. Market forces such as the boom in online sales have turned against bricks-and-mortar retailers, they contend.
