The Irish toy retailer Smyths Toys Superstores has signed a deal to take over ‘Toys R Us’ in Germany, Austria and Switzerland, according to a report in Global License.
The transaction was revealed by the German arm of the insolvent retailer on Saturday. No financial details were disclosed yet.
However, no official confirmation has come from both the parties. The deal is subject to the approval of the US court and relevant authorities.
As per the deal, Smyths will acquire 93 shops and four online stores.
The Irish company, Smyths, which runs 110 stores plus websites in Britain and Ireland, plans to take on all the Toys R Us units, staff and management in Germany, Austria and Switzerland.
“We are convinced that multi-channel toy retailing will develop positively and that we can successfully introduce and expand our brand in Europe,” co-founder Tony Smyth was quoted as saying.
Once the largest US toy retailer, Toys “R” Us abandoned a plan to emerge from bankruptcy and said it would try to maintain more profitable locations in Europe and Asia as an on-going business while liquidating its US and UK operations.
Earlier, the joint administrators of Toys R Us have announced that the final 75 stores in the UK will close by April 24, affecting more than 2,000 jobs. The 2,054 employees have been told and will be paid up to and including their last day of work.
The global brand went into trouble after the US business filed for bankruptcy last year and subsequently shut 180 stores. The UK branch went into administration in February, putting 3,000 jobs at risk, with “an orderly wind-down” getting underway after the failure to find a buyer.