A number of Toys "R" Us Inc. suppliers have cut back their shipments to the retailer as it grapples with debt refinancing while trying to stave off a possible bankruptcy filing, Bloomberg reports.
The suppliers are said to be scaling back shipments because the cost to insure their shipments to the struggling toy retailer has become too expensive.
The scaling back of supply comes as the Toys "R" Us is involved in discussions with lenders to acquire a new loan, allowing it to remain open as it devises a recovery plan.
Lazard Ltd. is marketing the loan to banks and existing creditors, the report added.
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