Toys R Us said readying U.S. liquidation
Toys R Us Inc. is making preparations for a liquidation of its bankrupt U.S. operations after so far failing to find a buyer or reach a debt-restructuring deal with lenders, according to people familiar with the matter.
While the situation is still fluid, a shutdown of the U.S. division has become increasingly likely in recent days, said the sources, who asked not to be identified because the information is private. Hopes are fading that a buyer will emerge to keep some of the business operating, or that lenders will agree on terms of a debt restructuring, they said.
The toy chain's U.S. division entered bankruptcy in September, planning to emerge with a leaner business model and more manageable debt. A $3.1 billion loan was obtained to keep the stores open during the turnaround effort, but results worsened more than expected during the Christmas shopping season, casting doubt on the chain's viability.
The situation has also deteriorated for many of the retailer's overseas divisions, which weren't part of the bankruptcy.
The company entered this year with more than 800 stores in the U.S. -- under both the Toys R Us and Babies R Us brands. In January, it announced the shuttering of 180 locations, including a Toys R Us in Fort Smith and a Babies R Us in Little Rock.
A representative for Wayne, N.J.-based Toys R Us declined to comment.
-- Bloomberg News
U.S. jobless-aid claims top forecasts
U.S. filings for unemployment benefits rose by more than anticipated from a 48-year low while continuing to signal a tight job market, Labor Department figures showed Thursday.
In week ending Feb. 24, jobless claims increased by 21,000, the most in six months, to 231,000. Continuing claims fell by 64,000 to 1.87 million, the lowest since early November. The data are reported with a one-week lag.
The four-week average of initial claims, a less-volatile measure than the weekly figure, rose to 222,500 from the prior week's 220,500.
Initial filings rose the most since the aftermath of Hurricane Harvey. The increase followed the period that included the Washington's Birthday federal holiday, and claims can be more volatile around weeks with holidays. Even with the latest rise, claims remain historically low, indicating employers prefer to hold on to workers amid a growing economy and a shrinking pool of qualified applicants.
Analyst projections for monthly data due today say employers probably added workers at a steady clip in February and the jobless rate ticked down to a 17-year low.
-- Bloomberg News
'11 Sonata cars recalled over air bags
DETROIT -- Hyundai is recalling nearly 155,000 Sonata midsize cars in the U.S. because the air bags may not inflate in a crash.
The recall covers cars from the 2011 model year. Hyundai says a short circuit in the air bag control computer can stop the seat belts from tightening before a crash as well as prevent the air bags from deploying.
The company says in government documents that it has four reports of air bags not inflating. It was not clear if anyone was hurt.
The cars were made between Dec. 11, 2009, and Sept. 29, 2010.
Hyundai is still working on a fix for the problem. It expects the recall to start on April 20.
-- The Associated Press
Costco profit climbs 36% in 2nd quarter
ISSAQUAH, Wash. -- Costco Wholesale Corp. reported a 36 percent jump in its fiscal second-quarter profit thanks partly to a $74 million boost from tax cuts, but the results fell short of expectations.
The company said it had net income of $701 million, or $1.59 per share. That's up from $515 million, or $1.17 per share.
Earnings, adjusted for pretax gains, were $1.42 per share.
The results fell short of the $1.45 per share that the Wall Street analysts surveyed by Zacks Investment Research expected.
The warehouse club operator posted revenue of $32.99 billion in the period, topping Wall Street forecasts. Six analysts surveyed by Zacks expected $32.72 billion.
Costco said its comparable sales, which exclude the impact from brand-new stores, rose 8.4 percent overall with slower growth in Costco's U.S. stores of 7.1 percent. Of Costco's 749 stores, 519 are in the U.S.
-- The Associated Press
4Q revenue increases at revamped Dell
Dell Technologies Inc., the world's largest private technology company, reported an increase in revenue in the fourth quarter after a retooling of its sales team to target its biggest enterprise clients and a jump in corporate demand for servers.
Once a household name for its line of personal computers, Dell has expanded to compete in a broader swath of the information technology market. Faced with a growing threat for cloud computing services from Amazon.com Inc. and Microsoft Corp. as an alternative to Dell's server and storage hardware businesses, the company has focused on its top-tier customers and is winning deals such as one last month with Formula One team McLaren Technology Group.
Dell has also sought partnerships with BlueData Software Inc., Meta and other firms to resell their products to its enterprise clients.
Revenue climbed 9 percent to $21.9 billion in the period ending Feb. 2, the Round Rock, Texas-based company said in a statement Thursday. Adjusted earnings before interest, tax, depreciation and amortization rose 13 percent to $2.47 billion.
Dell was aided by a general surge in demand for servers late last year. Global server revenue jumped 27 percent in the fourth quarter, while shipments rose 8.8 percent, buttressed by strong economies around the world, research firm Gartner said Thursday. Dell narrowly surpassed rival Hewlett Packard Enterprise Co. in worldwide market share, notching 19.4 percent to Hewlett Packard Enterprise's 19.3 percent, based on fourth-quarter revenue. IBM came in third, with 14.1 percent of the market.
-- Bloomberg News
Business on 03/09/2018