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Tag: Toys R Us

  • Build-A-Bear to open more stores in next 10 years in India

    Build-A-Bear to open more stores in next 10 years in India

    For more than 21 years, U.S. based personalized experiential toy retail brand Build-A-Bear has been sharing hearts and bear hugs globally, and after a long wait, Tablez – the retail arm of LuLu Group International, has launched the first Build-A-Bear store in India, at Toys”R”Us, Phoenix Marketcity in Bangalore. Build-A-Bear is a global customized stuffed-animal retail entertainment brand that aims to reach as many as 9 million households in the top 15 cities in India by 2025. Besides standalone stores, shop-in-shop formats of Build-A-Bear would be launched within Toys“R”Us.

    On this special occasion, Adeeb Ahamed, MD, Tablez said: “The Build-A-Bear concept is a one-of-a-kind retail experience, and we are thrilled to open the first store in Bangalore. Build-A-Bear is synonymous with creativity and novelty for children. I am sure that each child that enters our store will cherish their experience and leave with an indelible memory.

    “From standalone stores to shop-in-shop formats, Build-A-Bear is ready to reach out to families and kids in India and help loved ones create memories and spend more time together. We plan to open 20 standalone stores of Build-A-Bear across key cities in India over the next 10 years, along with shop-in-shop formats across all our Toys”R”Us stores as well.”

    Dorrie Krueger, Build-A-Bear Workshop Chief Strategy Officer, said, “Together with Tablez India, we are excited to open the first Build-A-Bear store in India and continue to expand into this important global market. We look forward to introducing the Build-A-Bear brand and sharing the joy of making a new furry friend with millions of families.”

    Build-A-Bear is a global brand that kids love and parents trust for fantastic family experiences. The ‘Choose Me’ wall at every Build-A-Bear store is where the empowerment journey begins as each guest chooses an unstuffed animal to bring to life. Accessories give customers the freedom to customize their creation. The heart ceremony is where one can add special wishes to their friend. During the stuffing process, a heart is placed in the bear along with special wishes, and the guest promises to care for their new furry friend once they are given the birth certificate. This signature ceremony brings each stuffed animal to life in a personal way, further ensuring a greater attachment.

    Established in 1997, Build-A-Bear has helped millions find their own meaning in a new furry friend. The brand has nearly 500 stores worldwide and more than 180 million furry friends have been made globally in its 21-year history. Build-A-Bear helps guests mark special occasions, start friendships, and inspires people to make their own adventures. At Build-A-Bear, one is empowered to feel that anything is possible.

    Further, a Build-A-Bear shop-in-shop format will follow in Vega City Mall, Bangalore; City Centre Mall, Mangalore and Phoenix Marketcity, Pune. Build-A-Bear plans to expand to as many as 65 shop-in-shop format stores and 20 standalone stores in India over the next 10 years.

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  • Tablez to launch Build-A-Bear in India

    Tablez to launch Build-A-Bear in India

    To meet an ever-increasing demand for an engaging retail environment, Tablez India announces the partnership with Build-A-Bear, a global experiential retailer. U.S.-based, customized stuffed-animal retail-entertainment brand Build-A-Bear aims to reach as many as 9 million households in the top 15 cities in India by 2025. Besides standalone stores, shop-in-shop formats of Build-A-Bear would be launched within Toys“R”Us as part of Tablez, the retail arm of LuLu Group International.

    Adeeb Ahamed, MD, Tablez said, “The Build-A-Bear concept is a one-of-a-kind retail experience, and we are thrilled to bring it to India. We believe that children who come to our stores will be able to enjoy a different shopping experience that includes participation in creating stuffed animals of their own choice.”

    He also added, “At Tablez, we are continuously striving to meet the increasing demand for high-quality specialty toys, and we look forward to opening more Build-A-Bear and Toys”R”Us stores across India, as our company continues to grow.”

    On this occasion, Dorrie Krueger, Build-A-Bear Workshop Chief Strategy Officer, said, “We look forward to embarking on this new partnership with Tablez India and helping establish and grow the Build-A-Bear brand in this important global market. As our international franchise portfolio continues to expand, we are further assured that the hug of a teddy bear is understood in any language.”

    Established in 1997, Build-A-Bear has helped millions find their own meaning in a new furry friend. The brand has nearly 500 stores worldwide, and more than 175 million furry friends have been made globally in its 21-year history. Build-A-Bear helps guests mark special occasions, start friendships, and inspires people to make their own adventures. At Build-A-Bear, one is empowered to feel that anything is possible.

    The ‘Choose Me’ wall at every Build-A-Bear store is where the empowerment journey begins as each guest chooses an unstuffed animal to bring to life. Accessories give customers the reins to customize their creation. The heart ceremony is where one can add special wishes to their friend. During the stuffing process, a heart is placed in the bear along with special wishes, and the guests promises to care for their new furry friend. This signature ceremony brings each stuffed animal to life in a personal way, further ensuring a greater attachment. Guests find meaning in each of the animals designed – they are friends, playmates, heroes, look-a-likes and evidence of special memories. Dogs, cats, bunnies and even unicorns complement the timeless teddy bear to ensure there’s a furry friend for everyone.

    Tablez launched the first Toys“R”Us store in Bangalore in 2017. Before end of 2018, 4 stores will be operational, and another 20 stores are expected to be launched in 2019. In February 2019, Build-A-Bear will be launched as part of Toys“R”Us in Phoenix Marketcity, Bangalore. Further, a Build-A-Bear shop-in-shop format will follow in Vega City Mall, Bangalore; City Centre Mall, Mangalore and Phoenix Marketcity, Pune. The 20 additional standalone stores of Toys”R”Us are expected to be launched in major locations starting January 2019. Build-A-Bear plans to expand to as many as 65 shop-in-shop format stores and 20 standalone stores in India over the next 10 years.

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  • Fung Retailing boosts stake in reborn Toys R Us Asia

    Fung Retailing boosts stake in reborn Toys R Us Asia

    Fung Retailing has finally secured a deal to continue to operate the profitable Toys R Us Asia business. The privately owned Hong Kong business, which is separate to the listed Li & Fung, will boost its stake in Toys R Us Asia from 15 per cent to about 21 per cent, making it the retailer’s largest shareholder.

    The balance will be owned by Taj Noteholders representing a mixture of investment funds and financial institutions who have a stake in the collapsed parent company Toys R Us US.

    Toys R Us Asia has never been affected by the liquidation of the US business – it has been trading profitably under Fung Retailing direction and has even been expanding its store network while shops bearing the iconic banner have been closing in post part of the world. Last week it relaunched its store in Brunei.

    The new partnership between Fung Retailing and Taj Noteholders values the company at US$900 million.

    “This transaction is a significant step in separating the valuable and growing Toys “R” Us Asia operation from the rest of the business,” said an unidentified spokesman for Taj Noteholders in a statement.

    “The company’s growth prospects in Greater China, Japan and Southeast Asia are bright and we are excited about investing in and owning the company in partnership with Fung Retailing”.

    Pieter Schats, executive director of Fung Retailing, said that since introducing Toys R Us to Hong Kong in 1986, Fung Retailing has played an integral role in the successful growth and development of the business across Asia.

    “As a sign of the confidence we have in the management team and future success of Toys R Us in the region, we are pleased to increase our shareholding in the company, reflecting our commitment to support Toys R Us Asia in reaching new heights.”

    The company will continue to be led by its current president & CEO Andre Javes and his management team.

    Technology boost

    The new owners of Toys R Us Asia plan a “significant investment in technology” to boost the company’s infrastructure.

    “We are committed to remaining the leading specialty retailer of toy, education and baby products in Asia by driving innovation and quality through our products and services,” said Javes. “The conclusion of the sale process brings clarity to the company’s ownership and we look forward to strengthening and leveraging our partnerships with our vendors and commercial stakeholders. Our shareholders’ investment is a huge vote of confidence in our vision, our team and our winning model.”

    Toys R Us Asia operates more than 450 stores in Japan, Greater China and Southeast Asia, including Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand. It also licenses more than 85 stores in the Philippines and Macau.

  • Toys R Us reopened in Brunei

    Toys R Us reopened in Brunei

    Toys R Us Brunei has relaunched its Mabohai Shopping Complex store. The reopening, after extensive redesign and renovation works, attracted long queues of shoppers hoping to pick up special deals promoting the event. Along with the reopening, the store has expanded its product range by 70 per cent.

    Toys R Us (Singapore) group country director Raymond Burt reassured customers the brand is “here to stay”.

    “We have been in Brunei for around six years and we have re-signed our lease here at Mabohai Shopping Complex. We have also reinvested in the store and spent quite a bit of money to bring the latest design of the market to the store. We have renovated the store with a layout that is segmented by age for children, to make it easier for customers to shop.

    “We have updated the design and signage as well as added elements of interactive play that we didn’t have before.”

    Toys R Us operates 67 stores in Asia and has 18 new stores planned for launch by the end of the year, the majority in China. It is part-owned by Fung Retailing and not affected – as yet – by the collapse of the company in the US.

  • Fung Retailing, Alibaba to collaborate bringing lifestyle brands into China

    Fung Retailing, Alibaba to collaborate bringing lifestyle brands into China

    Fung Retailing and Alibaba have formed a strategic partnership to launch more international lifestyle brands in Mainland China. The partnership will bring closer Alibaba’s 600-million user base and Fung Retailing’s 3000+ network of stores across Greater China, UK, France, South Korea, Singapore, Malaysia, Thailand and the Philippines. Its partly- or majority-owned businesses include Circle K and Zoff (under Convenience Retail Asia), Trinity, Toys R Us, Suhyang Networks, the UCCAL Fashion Group and Branded Lifestyle Holdings.

    The Fung Retailing and Alibaba collaboration aims to meet the increasing demand of Chinese consumers, building on the strengths of both parties in online and offline retailing, the two companies said in a statement. At the same time, it will better serve global brands by leveraging Fung Retailing’s global portfolio of brands, offline retail channels and marketing know-how, as well as Alibaba’s ecosystem, digital retail leadership, technology, and consumer insights.

    “That will help global brands tailor their product development and marketing strategies to meet the ever-changing needs of Chinese consumers,” the statement said. “The brands can also draw on Alibaba’s new retail channels, including Tmall and Intime, as well as Fung Retailing’s offline stores, thereby reducing costs, risks, and the time traditionally associated with entering the China market.”

    Photo: At the Fung Retailing and Alibaba MOU signing ceremony this week, from left: Sabrina Fung, group MD of Fung Retailing, Dr Victor Fung, group chairman of the Fung Group; Daniel Zhang, CEO of Alibaba Group; and Toby Xu, VP of Alibaba Group.

    Under a memorandum of understanding signed this week, both companies will join forces in global brand recruitment and offer brands merchandising, marketing and omnichannel distribution services. This collaboration will focus on the mainland China market as a first step, and potentially expand to other regions riding on Alibaba’s platforms.

    Speaking during the signing ceremony in Shanghai, Alibaba CEO Daniel Zhang said Alibaba wants to help global brands expand their foothold in China by fully integrating its New Retail capabilities, big data and technology with Fung Retailing’s “unparalleled advantages in brand and supply chain resources”.

    “We believe this partnership represents the beginning of a new chapter for New Retail.”

    Fung Retailing’s group MD Sabrina Fung said retail is changing exponentially, so it’s important to stay ahead of the curve, which this agreement allows the company to do.

    “Through this exciting strategic partnership with Alibaba, we will help customers navigate the full Chinese retail economy and reach China’s 1.4 billion consumers more easily. In this evolving retail landscape, and faced with changing consumer behavior and disruptive retail technologies, we are focused on developing new ways to do business,” she said.

     

  • Toys R Us battle heads to court

    Toys R Us battle heads to court

    Fung Retailing’s battle with the administrators of bankrupt Toys R Us has ramped up, with the latter company filing an injunction request in US courts this week.

    The Hong Kong company is working to protect its first-right-of-refusal clause on acquiring shares in the Toys R Us Asia business, beyond its existing 15 per cent cornerstone holding. That was a condition of its investment.

    But Toys R Us, well aware that the toy retailer’s strongest and most valuable business unit is the Asian company, want to maximise the gain from its sale through an open auction process, in order to have as much cash as possible to pay creditors.

    Various international media outlets have reported an 85 per cent stake in the Toys R Us Asia business could be worth more than US$1 billion and there have been unconfirmed reports Fung Retailing wants to purchase the entire business, most likely with a private equity partner.

    Toys R Us’ application for an injunction seeks to block Fung Retailing’s attempts to open arbitration over the sale. Toys R Us claims Fung is trying to derail the reorganisation process and Bloomberg has previously reported the US company wants to void the first-right-of-refusal clause.

    Bloomberg observed: “This uncertainty will drive down bids – benefiting Fung (which can then either exercise its right of first refusal … or bid for the asset at a depressed price), but harming the debtors and their creditors (whose primary basis for recoveries will be the value achieved from the Asia JV sale).”

    Toys R Us Asia has more than 220 stores in Mainland China, Hong Kong, Singapore, Thailand, Malaysia, Brunei and Taiwan.

  • Fung Retailing likely to sell Toys R Us stake

    Fung Retailing likely to sell Toys R Us stake

    Lenders owed funds from the collapsed Toys R Us North American business are trying to have a US court force Hong Kong’s Fung Group to sell its stake in the profitable Asian subsidiary.

    According to a report by Bloomberg, for which Fung Retailing did not respond to a request for comment, senior lenders have made an opening bid of US$760 million for Toys R Us Asia, of which Fung Retailing holds 15 per cent. That’s well below the $1 billion the company said in April it was likely to receive for the business several months ago, citing “multiple bids”. But now the company says it has been unable to get any of those bidders to commit, alleging “interference” by Fung.

    The lenders, which include York Capital Management Global Advisors, Barclays Bank and Cerberus Capital Management, plan to essentially swap debt for equity in the Toys R Us Asia business in what is termed a “credit bid”.

    The business goes to auction in a US bankruptcy court next month.

    However, according to Bloomberg, Toys R Us has asked a federal judge to invalidate Fung Retailing’s option giving it first right of refusal to purchase additional shares – and to force the Hong Kong company to sell its stake.

    Toys R Us Asia has repeatedly stressed its business was robust and profitable during the collapse of the US and then UK operations.

    The US toy retailer was unable to restructure its debt after filing for bankruptcy last year and has since progressively closed its operations in North America, the UK and Australia.

    Bloomberg says the liquidation sales may not bring in enough money to cover the cost of the bankruptcy, with suppliers, lawyers and former employees all seeking payment for services they provided after Toys R Us entered Chapter 11 last September.

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  • Bratz Dolls maker bids to rescue Toys “R” Us

    Bratz Dolls maker bids to rescue Toys “R” Us

    Toy company executive Isaac Larian says he and other investors have pledged $200 million in financing and hope to raise four times that amount in crowdfunding in order to bid for up to 400 of the Toys “R” Us stores being liquidated in bankruptcy.

    The unsolicited bid still faces many hurdles, including finding other deep-pocked investors and getting a bankruptcy judge to agree to it. But this is the first public plan to keep the cherished toy brand in existence in the United States.

    Such a long-shot move would also greatly benefit Larian’s primary business. He’s CEO of Bratz Dolls maker MGA Entertainment, which relies on Toys “R” Us for nearly one in every five sales.

    Larian says he and the other investors, which he declined to name, believe salvaging part of the Toys “R” Us business will be good for the toy industry, customers and workers. They’re interested in more than half the 735 U.S. stores Toys “R” Us plans to liquidate and want to be able to use the valuable brand name.

    And they’re hoping the outpouring of affectionate nostalgia when Toys “R” Us announced its plans — #SaveToysRUs has been a trend on social media — translates into pledges toward their $1 billion goal.

    Toys “R” Us sought court approval last week to liquidate its remaining U.S. stores, threatening the jobs of some 30,000 employees and spelling the end for a chain known to generations of children and parents for its sprawling stores, sing-along jingle and Geoffrey the giraffe mascot.
    The store has an iconic place in American culture, said Larian. “We can’t just sit back and just let it disappear.” Larian, who is a billionaire, is using his own money, not MGA funds, for the bid.

    Why might Larian be successful with a retail chain struggling to stay relevant in the age of Amazon? For one thing, Larian wouldn’t have the massive $5 billion in debt that hampered the current owner of Toys “R” Us. He also says the toy industry needs a big chain like Toys “R” Us, where children can touch the toys and toy makers can test new products.

    The chain’s liquidation will have a “devastating effect” on the toy industry, said Larian, who estimates that 130,000 jobs in the U.S. could be lost when you include layoffs at suppliers and logistic operations. He said a total Toys “R” Us liquidation could mean MGA would have to lay off workers at an Ohio plant that makes the Little Tikes toy vehicles. That brand accounts for 25 percent of MGA total sales, and Larian says only Toys “R” Us really had enough room to display the cars. It’s harder to ship such bulky items on Amazon.

    The Toys “R” Us troubles have hurt big toy makers like Mattel and Hasbro, which have been key suppliers to the chain. MGA, based in Van Nuys, California, is the world’s largest privately held toy company. The planned liquidation would have a bigger impact on smaller toy makers that rely more on the chain for sales.

    “People do not realize the hole that can’t be filled by other retailers,” said Larian, noting that Toys “R” Us accounts for 18 to 19 percent of MGA’s worldwide sales. “The pipeline is too big.”

    Larian claims that if 400 U.S. Toys “R” Us stores are salvaged, he could save one-third of the 130,000 jobs.

    The planned closure of the U.S. Toys “R” Us stores over the coming months will finalize the downfall of the chain that succumbed to heavy debt and relentless trends that undercut its business, from online shopping to mobile games.

    When the chain filed for Chapter 11 bankruptcy protection last fall, it pledged to stay open. But after what CEO David Brandon called a “devastating” holiday shopping season, Toys “R” Us announced in January it would close 182 stores, and then last week that it would liquidate.

    The company said last week it’s trying to bundle its Canadian business with about 200 U.S. stores and find a buyer. Larian has personally aligned with another investor in a separate bid for those operations, though he declined to specify the value of it.

    Toys “R” Us is also likely to liquidate its businesses in Australia, France, Poland, Portugal and Spain. It’s already shuttering its business in the United Kingdom. That would leave it with the stores in Canada, as well as in central Europe and Asia. It operates more than 700 stores outside the United States.

  • Toys R Us founder dies days after chain’s announced shutdown

    Toys R Us founder dies days after chain’s announced shutdown

    There is sad synchronicity in the timing of the death of Toys R Us founder Charles Lazarus,  which comes as the retailer is preparing to shut up shop.

    News of the passing of Lazarus, 94, was tweeted by Toys R Us overnight. He founded the company in 1957 after returning from military service.

    The current woes of the toy giant do nothing to detract from the passion, skill, and enthusiasm that Lazarus brought to the business.

    The Toys R Us he created was an innovative and pioneering retailer that, in an era before online selling, used scale and volume to create a mecca to which generations of children were drawn.

    Unfortunately, many of the attributes that once made Toys R Us successful eventually became burdens that prevented the firm from competing in a digital era.

    Lazarus was not the author of those failures. Indeed, when he exited the firm in 1994, he left a sound business that had pride and purpose. Sadly, many – though not all – of his successors lacked his commercial intellect. Where he made sound decisions; they stumbled and made choices that would ultimately lead to the firm’s demise.

    The cold treatment of Toys R Us by private equity players during its latter days was in sharp contrast to the warmth and joy Lazarus had for – and brought to – the business at its start. Ultimately, his vision and approach were right. Retail in general and toy retail, in particular, is a business that needs emotion and enthusiasm. Once those things disappear, it is not long until decline sets in.

    The passing of Charles Lazarus is an ideal time to remember that retail is not just about numbers, metrics, and financials. It’s about passion, purpose, and strategy. Proper merchants, like Lazarus, knew this – which is one of the very many reasons he will be missed.

    Announcing Lazarus’ passing, Toys R Us commented: “There have been many sad moments for Toys R Us in recent weeks, and none more heartbreaking than today’s news about the passing of our beloved founder, Charles Lazarus, after a period of declining health. He visited us in New Jersey just last year and we will forever be grateful for his positive energy, passion for the customer and love for children everywhere. Our thoughts and prayers are with Charles’ family and loved ones.”

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  • Amazon Has Considered Buying Some Toys ‘R’ Us Stores

    Amazon Has Considered Buying Some Toys ‘R’ Us Stores

    Selected sites of Toys R Us US stores may be taken over by Amazon.

    Bloomberg reports the bankrupt toy retailer is in talks with the e-commerce giant over the future of an unspecified number of stores which could be converted to Amazon’s growing portfolio of offline retail spaces. The company recently acquired grocery chain Whole Foods, which has 450 sites, and has been opening physical book stores in selected US markets.

    Toys R Us US is closing down more than 700 stores, many of which have moderate- to large-sized footprints suited to bulky goods or grocery retailing.

    Bloomberg’s sources said Amazon is not interested in the Toys R Us brand but sees opportunities to use physical stores to deliver online purchases faster. It may possibly use the sites to demonstrate its Alexa voice-activated technology.

    Amazon has previously negotiated taking over Radio Shack stores after that chain collapse, but no deal was reached.

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  • Toys R Us Asia assures it will not be affected by US’s liquidation

    Toys R Us Asia assures it will not be affected by US’s liquidation

    Toys R Us Asia has repeated earlier assertions that its business 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 Asia-Pacific 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 continues 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 CEO David Brandon was quoted by The Wall Street Journal as saying that the retailer’s 39 stores in Australia would likely be liquidated.

    The Australian operations are currently being run by local MD 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.

    The US parent 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 did not elaborate on its plans for the Asian arm if its US-based partner Toys R Us Inc goes under.

     

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  • Bankrupt Toys ‘R’ Us is closing all US and UK stores

    Bankrupt Toys ‘R’ Us is closing all US and UK stores

    Toys R Us will sell or close all of its US and UK stores in coming months.

    The decisions, by respective liquidators appointed on both sides of the Atlantic, will leave Canada, Asia and Central Europe up for sale as the last remaining Toys R Us businesses internationally, with operations in France, Spain, Poland and Australia tipped for closure as well.

    Toys R Us has 885 stores in the US and employees about 33,000 people there. It had already begun closing about 20 per cent of its outlets as part of a plan to exit Chapter 11 bankruptcy protection.

    But no buyer could not be found for the remaining business as a going concern.

    Asia appears to be the only region in the world where the Toys R Us business is robust. It is a joint venture with Fung Group, which holds a 15 per cent stake and is reportedly planning a takeover of the business, possibly funded in part by an IPO. But with the brand having failed almost everywhere else in the world, it is unclear how keen investors would be in Hong Kong.

    Neil Saunders, MD of analysts GlobalData Retail, described the liquidation of Toys R Us as “unfortunate but inevitable” given the retailer had lost its way and forgot its core retail competencies.

    “Even during recent store closeouts, Toys R Us failed to create any sense of excitement.”i

    Saunders said management may blame suppliers and competitors for its demise, but the primary responsibility lies with poor decisions.

    “As the competitive dynamics of the toy market intensified, management failed to respond and evolve. As such, the brand lost relevance, customers and ultimately sales.

    “Admittedly, the leveraged buyout which burdened the company with debt reduced the room for maneuver and left Toys R Us vulnerable. Questions should be asked as to the wisdom of this particular financial transaction which weakened the sustainability of the company.”

    The decision to close down Toys R Us was essentially made by its lenders who believed that without a clear reorganisation plan, they could recover more from a liquidation, closing stores and raising money from merchandise sales, according to sources quoted by AP.

    The Toys R Us UK operation was placed in administration at the end of last month.

    Yesterday, administrator Moorfields Advisory confirmed that no prospective buyer had been found for the business and that all 101 stores would close progressively.

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  • Toys ‘R’ Us is said in talks to sell Asia unit to Fung Group

    Toys ‘R’ Us is said in talks to sell Asia unit to Fung Group

    Toys ‘R’ Us Asia may be taken over by to its local partner, the Fung Group.

    A deal could give Toys ‘R’ Us Asia a valuation of at least US$1 billion. The private holding company of Hong Kong’s billionaire Fung brothers is considering finding partners to join it in the purchase, and if a deal is reached the group may seek an IPO after one to two years, according to the source.

    The US company and some of its North American subsidiaries filed for bankruptcy in September, the Asian unit being excluded. Growth in Asia Pacific helped offset weak sales in the US and Europe in the quarter ended October 28. The company combined its Japanese business with the broader Asia venture last year, which now has more than 400 outlets throughout the region.

    Representatives for Toys ‘R’ Us and Fung Group have declined to comment on the possibility of the Asia business being offloaded.

    Separately, the UK arm of Toys ‘R’ Us is likely to start a court-led administration process this week after failing to secure new financing to meet a tax liability due this month. The business faces a £15 million ($21 million) value-added tax bill, and talks with potential buyers have fallen through in the past few weeks.

    Toys ‘R’Us Asia was set up in 1986. Fung Group is also the biggest shareholder in Li & Fung, a supplier to Wal-Mart Stores and other US retailers. KKR, Bain Capital and Vornado acquired New Jersey-based Toys ‘R’ Us in a $7.5 billion leveraged buyout in 2005. The company has more than 1600 stores and nearly 65,000 employees worldwide.

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  • Toys ‘R’ Us planning to close more stores

    Toys ‘R’ Us planning to close more stores

    Toys “R” Us, the beleaguered chain under pressure from Amazon and bigger toy sellers, may close dozens more stores as it struggles to find a path out of bankruptcy and return to financial viability.

    The toy retailer has not recovered from a dismal holiday selling season, making the company’s difficult situation even worse. Now, it is under pressure to demonstrate to its lenders that it has a realistic strategy for flourishing in the ultracompetitive toy industry.

    One plan under discussion includes shutting down close to 200 stores, and possibly more, according to people briefed on the matter, who were not authorized to speak publicly.

    While the planning is fluid and far from completion, the possible store closings, reflect the serious challenges that Toys “R” Us faces.

    “If you look at the numbers, it doesn’t look good,” said Richard Gottlieb, an analyst and the publisher of Global Toy News. “And it appears that some dramatic action is going to have to take place.’’

    Toys “R” Us has already been taking steps to stabilize its business. Last month, the company said it was shutting down 182 stores, affecting 4,500 workers.

    It is not clear whether any additional closings would occur in the United States, or overseas. The company operates about 800 stores in the United States.

    Even as other retailers experienced strong holiday sales, Toys “R” Us cited undisclosed “operational missteps” in explaining its poor performance.

    Analysts say that a primarily bricks-and-mortar toy retailer can succeed, but that its stores have to be smaller, unlike the hulking Toys “R” Us facilities that dot suburban strip malls.

    “A toy store needs to be fun and engaging and interactive,” said Mr. Silver. “Toys “R” Us has been talking about better customer service and experiences, but they never really transpired.”

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  • FAO Schwarz Sets Its Sights on China

    FAO Schwarz Sets Its Sights on China

    As it continues its revival, US retail toy giant FAO Schwarz has set its sights on China.

    It plans to open stores in Beijing and Shanghai this year through a collaboration with China toy distributor Kidsland.

    Kidsland will also open 30 FAO Schwarz shops in 200 department stores across China over the next five years.

    “With customers looking for authentic brands and memorable encounters, we believe the brand will become a game changer in China’s toy industry,” says Kidsland International chairman/CEO Lee Ching Yiu.

    Founded in 1862, FAO Schwarz was the oldest toy store in the US when its sole remaining outlet, a flagship on Manhattan’s Fifth Avenue, closed in 2015. But its branded products continued to live on at Toys R Us, which bought the brand in 2009. In October 2016, Toys R Us sold FAO Schwarz to ThreeSixty Group, which designs, makes and distributes toys and other consumer products under a portfolio of owned and licensed brands.

    Meanwhile, FAO Schwarz has signed a licence agreement with Wild and Wolf, which designs and makes wooden toys, puzzles and games.