Toys’R’Us Asia “open for business” despite US collapse
Toys’R’US Asia has said that it will not be affected by the liquidation of Toys’R’US stores in the US and UK, amid reports that Australian operations would likely need to close.
Toys’R’Us Asia’s joint-venture partner Fung Retailing, which owns approximately 15 per cent of the toy retailer’s APAC arm has clarified that its 400 stores in Greater China and Southeast Asia remain open for business.
“Toys’R’Us Asia is open for business and continuing to serve our customers as we always do,” Toys’R’Us Asia president Andre Javes said.
“We are a financially robust and self-funding retail operation, which continued 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 150 stores and will be opening another 30 in the coming months.”
Toys’R’Us Asia operates as a separate legal entity to Toys’R’Us Inc. and according to Fung is “financially independent from all other Toys’R’US operating companies around the world”.
Last week Toys’R’Us’s US-based chief executive David Brandon was quoted by The Wall Street Journal as saying that the retailer’s 39 stores in Australia would likely be liquidated.
Toys’R’US’ Australian operations are currently being run by local managing director Dianne Guerreiro, who less than six months ago was charting expansion for the business, outlining a plan to open up to 20 stores in the coming years.
Toys’R’Us Australia has also said it is “business as usual” despite the US collapse.
Toys’R’Us Inc. announced that it would be winding down the majority of its operations last week after efforts to save the company collapsed when lenders decided not to extend their support for the ailing business.
The toy retailer, which has more than 800 stores across America, has struggled to keep up with escalating competition from the likes of Amazon and Walmart in recent years, particularly as online shopping has become more prevalent.
Fung Retailing declined to comment on whether it would look to extend its stake in Toys’R’Us Asia, or pursue an IPO to fund additional investment.
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.
Inside Retail Polls
Camille Reed is under no illusions that it will be quick or easy to transition to a circular fashion economy, but s… https://t.co/P0hcgWKgAA3 hours ago
As Australian retail enters an off year, Deloitte's David Rumbens argues the grass may be greener on the other side… https://t.co/gcBZXHASrW6 hours ago