Toys R Us is in talks to sell its Asia business to Hong Kong's Fung Group, Bloomberg reported Feb. 27, citing people close to the matter.

The toy retailer, which filed for bankruptcy in September 2017, is in talks to sell its 85% stake in the joint venture to the Fung Group, which owns the remainder of the business, Bloomberg reported. A deal could value the business at $1 billion or more, according to the report. William and Victor Fung are the managers of the Fung Group, which runs a large network of companies.

The Fung family's privately held King Lun Holdings Ltd. held 27.7% of supply chain and logistics company Li & Fung Ltd. as of Jan. 1, 2018, according to S&P Capital IQ.

William and Victor Fung are considering finding partners to join in their purchase of the Toys R Us Asia business and may pursue an IPO of Toys R Us Asia after one or two years, Bloomberg reported.

The company's operations outside the U.S. and Canada, including about 255 licensed stores and joint ventures in Asia, are separate entities and are not part of the bankruptcy protection proceedings. The retailer had been considering an IPO of its Asian business, according to a Bloomberg report in October 2017.

Toys R Us is also reportedly seeking a buyer for its U.K. arm but recently lost a potential buyer before the company's tax bill came due Feb. 27.