While most of the news we’ve passed on about Toys R Us in recent times has been fairly bleak, we can share some good news for some of the beleaguered chain’s overseas outlets.
The Wall Street Journal (paywall) reports that Toys R Us’ Central European and Asian operations are still extremely healthy and profitable, with multiple bids in excess of $1 billion received for an 85% in the Asian side of the business. However, it is not certain yet that the Asian operations will be taken over – according to Brian Hermann of Paul, Weiss, Rifkind, Wharton & Garrison LLP, there needs to be confidence for vendors beyond indications of interest, and to that end Toys R Us has secured an additional $80 million of bankruptcy loans to support the overseas operations.
However, things are looking promising, and it seems that this most profitable part of Toys R Us’ operations will endure. You can discuss these happenings here.
Meanwhile, those European operations which are reported to also still be profitable and not being dragged down by the collapse of the main corporation also potentially have a buyer. German newspaper Frankfurter Allgemeine Zeitung (FAZ) reports that the German, Austrian, and Swiss Toys R Us operations have received a bid from the Irish-British toy store chain Smyths Toys. Smyths are a family-owned chain based in Ireland, who have 100 stores across Ireland and England, and even before the closure of Toys R Us had emerged as a genuine and real competitor. If there were ever a safe pair of hands to keep Toys R Us alive in parts of Europe, Smyths may well be it. Other bids are also expected to be announced over the next week. Discuss this turn of events here.