Ricochet News

Toys ‘R’ Us SA unaffected by bankruptcy at American stores

By Jesica Slabbert - Sep 20, 2017
Toys ‘R’ Us SA unaffected by bankruptcy at American stores

Toys ‘R’ Us South Africa on Wednesday assured local shoppers that it was busy as usual at its stores after the Toys ‘R’ Us parent company in the United States filed for bankruptcy on Tuesday morning.

The US company reportedly owes around $5 billion from a previous buyout and due to loss of sales from online shopping competition.

“Together with our investors, our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet,” said Chief Executive Dave Brandon.

Though the stores in America and Canada are facing bankruptcy, the South African Toys ‘R’ Us is doing so well they have plans to open up seven more stores across South Africa.

This is due to the fact that Toys ‘R’ Us in South Africa operates independently compared to the US stores.

“Toys R Us and Babies R Us Southern Africa, has grown substantially to become the trusted and most valued toy and baby product retailer in the territory. We are well positioned to achieve our target of adding seven more stores to our portfolio, offering customers a wide variety of quality products at affordable prices,” says Nicole Annells, marketing manager Toys ‘R’ Us and Babies ‘R’ Us SA.

The new stores will be opening up in Gauteng, the Western Cape, North West Province and Mpumalanga over the next few months.

“Increasing the brands footprint in these areas strengthens our presence and opens further growth opportunities in Southern Africa. We are looking forward to the tremendous growth potential for the Toys R Us and Babies R Us brands.”