Toys R Us withdraws proposed initial public offering
March 29 (Reuters) - The world's largest dedicated toy retailer Toys R Us Inc withdrew its proposed initial public offering, according to regulatory filings.
The New Jersey-based retailer, which operates stores under its namesake brand and the Babies R Us and FAO Schwarz labels, had filed for an initial public offering in May 2010.
Toys R Us "has determined not to pursue (the IPO) at this time", the company said in a filing with the U.S. Securities and Exchange Commission. ()
The company had postponed its IPO in 2011 due to weak market conditions and has since struggled with mounting interest expenses and weak sales. Sources had told Reuters in February that chances of this IPO happening were low.
Toys R Us, which also reported fourth-quarter results on Friday, said total sales fell 3 percent to $5.77 billion while interest expense jumped 35 percent in the 14 weeks ended Feb. 2. Net profit fell 30 percent to $240 million.
The company's performance in 2012 was hurt by a weak global economic environment, particularly in Europe and Japan, said outgoing Chief Executive Gerald Storch, who resigned last month.
Toys R Us first went public in April 1978 and operated as a public company until July 2005, when it was taken private by KKR & Co LP, Bain Capital and Vornado Realty Trust in a $6.6 billion deal.