Woes won’t hit SA’s Toys ‘R’ Us

TOYS “R” Us and Babies “R” Us Southern Africa will not be affected by the retailer filing for bankruptcy protection as it struggles with $5 billion (R66bn) in debt and intense online competition.

Marketing manager Nicole Annells said: “While Toys ‘R’ Us Inc, which incorporates Toys ‘R’ Us US and Canada, evaluates the restructuring of its operations and debt and continues to deliver an outstanding customer experience, this course has no bearing on the licence territories which continue to trade as independent entities.

“Toys ‘R’ Us and Babies ‘R’ Us Southern Africa is owned and operated independently from its global affiliates as a licensed entity and is therefore unaffected.

“Focus of the South African registered company is on continuing successful growth in southern Africa.”

She said the company was aggressively expanding its retail footprint, boasting seven new store openings in key shopping malls within the next three months. The expansion paves the way for more than 50 stores in southern Africa.

Reuters this week reported that Toys “R” Us Inc had court permission to borrow more than $2bn (R26bn) to start paying suppliers so it could stock up on toys for the holiday season, a day after it filed for bankruptcy.

The filing was among the largest by a speciality retailer and cast doubt over the future of the group’s 64 000 employees and nearly 1 600 stores.

In a statement the group said its operations outside the US and Canada, including its 255 licensed stores and joint venture partnership in Asia, were not part of the filing. – Staff Writer