The New York Times quoted McGuireWoods partner Doug Foley in a March 15 story on the announcement by Toys “R” Us that it will close or sell all of its stores in the United States. The retailer filed for bankruptcy last September.
Foley, a Washington-based partner in the firm’s Restructuring & Insolvency Department, is representing a lender in the retailer’s Chapter 11 bankruptcy proceeding. He told the Times that Toys “R” Us “had a long history of taking on debt and kicking the can down the road for 10 years, and refinancing.”
Lenders lost confidence in the company’s turnaround plan after giving Toys “R” Us leeway during the holiday shopping season, the Times reported. “The business plan was underwhelming, that is the best way to say it,” Foley said.