The collapsing toy business, which is liquidating its US and UK operations, is moving ahead with plans to sell some of its non-US operations, the company’s lawyer said in bankruptcy proceedings yesterday.
According to Reuters Toys ‘R’ Us has received multiple bids its majority stake in the Asian business which is run as a joint-venture with 15 per cent stakeholder, Fung Retailing.
Meanwhile Toys ‘R’ Us is attempting to maintain profitable operations throughout the region, despite winding down trading in its core markets.
Fung, a logical suitor for the business, has previously declined to comment on whether it would be launching a bid for full ownership of the Asian arm, but there have been reports that it is circling a proposal that would see it fund a buy with other partners or by taking the business public.
Toys ‘R’ Us locations throughout Asia and Australia continue to trade while the US-based business undertakes fire sales to clear stock and repay indebted creditors.
There are more than 200 stores in the Toys ‘R’ Us Asia portfolio which have thus far skated clear of the disruption taking place for the brand in western markets.
In an earlier statement Toys ‘R’ Us Asia president Andre Javes sought to distance his operation from his company’s majority owner.
“We are a financially robust and self-funding retail operation, which continued to significantly grow and invest in this region,” he said in March.
“Every year we are opening new stores in all our markets and particularly in China where we now operate over 150 stores and will be opening another 30 in the coming months.”
A $1 billion crowd funding initiative is still underway to save the collapsing US business, but it is unlikely to result in a purchase offer.
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