Cape Town – Despite Toys ‘R’ Us filing for bankruptcy in the US, it is still “business as usual” for Toys ‘R’ Us Southern Africa.
Toys ‘R’ Us in the US said in a statement on Thursday that it had filed a motion seeking bankruptcy court approval for the wind-down of its US business, and liquidation of inventory in its 735 stores.
The group is also looking to sell certain of its international operations.
But Nicole Annells, marketing manager of Toys ‘R’ Us and Babies 'R' Us South Africa, told Fin24 by phone that this is not the case for local stores.
The local company is privately owned and only pays royalties to the international company to use its brand name.
All local operations are managed privately. “It’s business as usual,” she said.
Annells added that royalties will continue to be paid to the international company, as per its agreement.
The South African operations have been experiencing “phenomenal growth”, according to a statement issued on Thursday by Toys ‘R’ Us in South Africa.
“We have maintained our momentum. Our revenue growth is solid, and Toys ‘R’ Us and Babies ‘R’ Us continues in a clear path of strengthening our brand footprint throughout South Africa,” Annells said.
Fin24 previously reported that the company was planning to open seven new stores in 2017.
Toys ‘R’ Us will be launching its refurbished flagship store at Canal Walk in Cape Town in April.
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