Toys R Us 3rd-quarter Sales Comparison Falls

NEW YORK (AP) — Toy retailer Toys R Us said Monday sales in its stores open at least a year fell about 9 percent in the third quarter, hurt by the shift of a promotional event and weaker video game sales.

The company said in a filing with the Securities and Exchange Commission sales in stores open at least a year, a key gauge of a retailer's performance, fell 7.2 percent in the first 12 weeks of the third quarter. In the final week, sales were hurt by the shift of its "Big Book" sale from the last week of the third quarter last year to the first week of the fourth quarter this year.

The company, based in Wayne, N.J., said the weak entertainment category, which has been hurt by video game sales, accounted for slightly less than half of the decline during the quarter.

Privately held Toys R Us said it expects cost cuts will more than offset the sales decline for the quarter.

The company also said it will privately offer $650 million in senior secured notes due 2017 to Giraffe Properties LLC. It expects to use proceeds plus cash on hand, to repay its existing $600 million senior secured real estate loan and security agreement and related mezzanine loans.

In connection with the offer, a subsidiary of Toys R Us will repay $200 million in additional senior secured real estate loan and security agreement and related mezzanine loans.