Toys R Us has received for $80m incremental debtor-in-possession (DIP ) financing from the company’s Taj Noteholders to support its Asian and Central European operations.

The investment will increase the company’s liquidity further, as well as fund the working capital needs of its current operations.

Expansion plans as part of the investment include strengthening the retailer’s presence and building inventory in Asia and Central Europe this year.

Toys R Us chairman and chief executive officer Dave Brandon said: “This additional financing further positions our Asian and Central European operations for continued success.

“We appreciate the ongoing financial support and look forward to continued positive relationships with our vendors.”

“We appreciate the ongoing financial support and look forward to continued positive relationships with our vendors.”

The company has received interim approval from the US Bankruptcy Court for the Eastern District of Virginia of the DIP financing with final approval scheduled for 27 April.

Last month, the company filed a motion seeking Bankruptcy Court approval to begin the process of conducting an orderly wind-down of its US business and liquidation of inventory in all 735 of its stores in the US and in Puerto Rico.

The company also announced that it is pursuing a going concern reorganisation and a sale process for its Canadian and international operations in Asia and Central Europe, including Germany, Austria, and Switzerland.

Kirkland & Ellis is serving as principal legal counsel, Alvarez & Marsal is serving as restructuring advisor and Lazard is serving as financial advisor to Toys R Us for this deal.