A buyer has been found for the 93 stores of the collapsed US toy retailer toys R us in germany, austria and switzerland.
The stores in the three countries, including the online stores, will be taken over by the irish industry giant smyths toys, according to the national company for toys r us in central europe. The agreement still had to be approved by the competent insolvency court in the USA and the competition authorities. The iren wanted to take over all employees and the management in the countries, including the head office in koln. No information was provided on the purchase price.
Smyths toys already operates 110 toy stores and online stores in ireland and the uk and will become the largest retailer of toys and baby products in europe with the acquisition, according to the company. In detail, 68 stores change hands in germany, 15 in austria and 10 in switzerland.
Smyths toys emphasized that they are convinced that they can successfully launch their own brand in continental europe. Toys R us is profitable in germany, austria and switzerland and has many loyal customers. "This is a good starting point for our expansion."
The U.S. Company toys R us had to pay tribute to increasing online competition and slipped into bankruptcy last fall with debts running into billions of euros. For a long time an investor was unsuccessfully sought. Now all branches will be closed or sold, the company founded in 1948 with at last over 1000 branches worldwide and around 64.000 employees disappear from the market after 70 years.
The insolvency of toys R us was one of the most recent examples of the decline of classic american retailing. Buyers are migrating in droves to the net – especially to the online giant amazon. In the USA, department stores and shopping malls are therefore increasingly threatened with extinction.
After the bankruptcy of the US parent company, the national company in central europe had emphasized that it would continue to meet all obligations and liabilities for services and deliveries of goods to business partners and employees. The branches and online stores remained open.