MONTRÉAL (BRAIN) — The liquidation of Toys "R" Us has forced Dorel Industries to issue a new audited financial report, now showing a charge of $3.8 million due to the toy store chain's closure. $3.1 million of the charge is from Dorel Sports, which includes bicycle sales. The rest is from Dorel's juvenile segment.
The charge is Dorel's best estimate of potential losses arising from non-payment from the chain; the actual loss may be different.
Dorel recorded sales of $13.4 million to Toys "R" Us in its first quarter this year. As of Wednesday, Dorel had accounts receivable from Toys "R" Us of $17.2 million, including $2.8 million from Dorel Home, $5.2 million from Dorel Juvenile and $9.2 million within Dorel Sports.
As a result Dorel revised its financial results for the fourth quarter and year that ended Dec. 30, to reduce its net income for the quarter and the year by $3.1 million.
In 2017, Toys "R" Us accounted for approximately 3 percent of Dorel’s total revenue.
