Smyths Toys to take over Toys R Us stores in Germany

THE ASSOCIATED PRESS
BERLIN, Germany.- Ireland-based Smyths Toys has reached a deal to take over more than 90 Toys R Us stores in Germany, Austria and Switzerland.

In March, Toys R Us said it would be liquidating its U.S. business. Its German branch said in a statement Saturday that Smyths Toys has signed an agreement to take over its activities in the three countries with 93 stores and four online shops.

Ireland-based Smyths Toys has reached a deal to take over more than 90 Toys R Us stores in Germany, Austria and Switzerland. The deal requires approval by a U.S. court and other authorities.

It foresees Smyths Toys taking over Toys R Us’ regional employees and local headquarters in Cologne. No financial details were given.

However, the UK business shows that revenues and profits there are growing strongly. It significantly increased pre-tax profits in its UK operations to £10m in 2016, as sales climbed by 19pc from £334m (€381m) to £396.49m on the back of new store openings.

The revenue increase contributed to pre-tax profits jumping by 69pc going from £5.96m to £10m.

The 19pc increase in revenues for Smyths Toys UK in the 12 months to the end of December 2016 followed sales growth of 30pc in 2015.

Toys 'R' Us said in January said it would shut about a fifth of its US stores as part of a plan to emerge from one of the largest ever bankruptcies by a specialty retailer but the plan was unsuccessful.

On Friday, it was reported that Fairfax Financial Holdings had made a bid to buy the Canadian unit of Toys 'R' Us Inc for about $300m.