‘Business as usual’ for Toys 'R' Us in SA, after US arm files for bankruptcy

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.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
17.22
(-1.22)
ZAR/GBP
22.55
(-1.17)
ZAR/EUR
20.28
(-1.15)
ZAR/AUD
12.27
(-0.89)
ZAR/JPY
0.16
(-1.42)
Gold
1972.88
(-0.41)
Silver
24.33
(-0.25)
Platinum
910.00
(+0.94)
Brent Crude
43.61
(0.00)
Palladium
2100.00
(+2.32)
All Share
55832.47
(+0.20)
Top 40
51554.26
(+0.36)
Financial 15
9948.84
(-2.04)
Industrial 25
74955.08
(+0.60)
Resource 10
56029.00
(+0.85)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 797 votes
It depends on how the funds are used.
74% - 5281 votes
No. We should have gotten the loan elsewhere.
15% - 1047 votes
Vote