Toys “R” Us reported that it has withdrawn its plans to take the company public citing unfavorable market conditions and the company’s recently announced executive leadership transitions. The company has filed Form RW with the SEC, which contains the company’s request to withdraw the S-1 Registration Statement.
The announcement was made as the company reported its financial results for the fourth quarter. For the fourth quarter, the company reported net sales of $5.8 billion, a decrease of $155 million compared to the prior year.
U.S. sales dropped about 2 percent to $3.5 billion, driven by a comparable store net sales decline of 4.5 percent. This figure excludes sales in recently opened or closed stores.
International sales also dropped 3.4 percent to $2.3 billion, driven by a comparable store net sales decline of 5.4 percent. This figure also excludes sales of stores open less than a year.
Jerry Storch, Chairman and CEO at Toys “R” Us, attributed the change in net income to costs associated with the company’s “successful debt refinancings and an increase in income tax expense.”
Toys “R” Us announced in February that Storch will transition from his role as CEO of the company, while remaining in his capacity as chairman of the board. A search is currently underway for his successor, and Storch remains in his position during this transition period.