Toys ‘R’ Us has settled with some of its creditors, including vendors, after a lengthy fight to keep its doors open, according to Retail Dive.
This week, attorneys for TRU said that would create a pool of funds for claims including $180 million for creditors and then followed by shard recovery once a group of secured lenders is getting at least 50 percent of the $1 billion they are owed according to pre-bankruptcy claims. Vendors and other creditors can remove themselves from the agreement.
A group of vendors claim they are owed $800 million for merchandise shipped for TRU. Crayola, who led a group of vendors making claims objected to numerous parts of the retailer’s liquidation plan, alleged that TRU prioritized certain lenders while other vendors who supported the company’s bankruptcy were left with millions in unpaid merchandise.