Toys R Us remains open despite debt woes
The company has filed for Chapter 11 of the Bankruptcy code in the US and Canada that will allow a restructure of its finances amid billions of dollars in debt.
Toys R Us said its 1,600 Toys R Us and Babies R Us stores and online operations around the world will continue to trade as normal.
“The company’s operations outside of the US and Canada, including its operations in Europe and Australia and its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing,” the company said.
Toys R Us expects this process will enable it to restructure its outstanding debt, which will provide greater financial flexibility for it to invest in growing the company.
Toys R Us (Asia) Ltd is a joint venture owned approximately 85 per cent by Toys R Us Inc. and 15 per cent by Fung Retailing Ltd (a privately-held entity and member of the Fung Group). It operates as a separate legal entity and is financially independent from all other Toys R Us operating companies around the world.
In May, the toy retailer combined its Japan, Greater China and Southeast Asia businesses as part of a joint venture with Hong Kong-based Fung Retailing.
“Toys R Us (Asia) is open for business and continuing to serve our customers as we always do,” said Andre Javes, president, Toys R Us (Asia). “We are a financially robust and self-funding retail operation, which continues to significantly grow and invest in this region. Every year we are opening new stores in all our markets and particularly in China where we now operate over 135 stores and will be opening another 22 in the coming weeks.”
Last month, Toys R Us announced it will open four new stores across Victoria, Queensland and New South Wales between September and November.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.
Myer will close all stores at close of business Sunday and stand down approximately 10,000 staff without pay for an… https://t.co/5sHH9ESabA3 days ago
Hairdressers have slammed the Government for flip-flopping on store closures, saying 30-minute cuts still put them… https://t.co/NlRdHNpMmI4 days ago