U.S. Bankruptcy Judge Rules in Favor of Toys 'R' Us

U.S. Bankruptcy Judge Keith L. Phillips ordered Fung Retailing Ltd., a joint venture partner of Toys “R” Us Inc., to drop a court action against the retailer yesterday in Richmond, Virginia, Bloomberg reports. This decision negates a Hong Kong court order to suspend the auction of Toys’ Asia operation, of which Fung owns 15 percent stake. Fung claims it will be harmed by the way Toys is pursuing a sale, while Toys claims Fung is attempting to scare off opposing bidders in order to buy out Toys’ stake at a discount.   

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