Australian Toys ‘R’ Us stores set to survive, as buyers eye off local operations
Tuesday, April 17, 2018/
Australian Toys ‘R’ Us stores look likely to survive the turmoil caused by the collapse of their US parent company, as buyers reportedly start looking to secure the Asian and Australian business operations.
According to Fairfax, sources say there have been “a dozen preliminary offers” received for the 400 stores operating in Australia and across Asia. These operations have traded as separate entities to the US head office, with 15% of the Asian store network owned by the billionaire Fung brothers.
According to Bloomberg reports, Toys ‘R’ Us has been in talks with the Fung Group to sell it the remaining 85% of the business.
There are currently 44 Toys ‘R’ Us stores trading across Australia.
Those involved in the sale process told Fairfax they are confident the deal will be done in the next seven weeks. Meanwhile, Toys ‘R’ Us has told a bankruptcy court in the US that it has received a number of bids of more than $1 billion for the Asian operations of the business.
Meanwhile, Isaac Larian, chief executive of toy producer MGA Entertainment, has put forward a bid of $US890 million ($1.1 billion) for the US and Canada operations of Toys ‘R’ Us.
“I’m just a simple man who started as a dishwasher in this great country and lived the American dream. I want to save over 130,000 jobs,” Larian wrote on Twitter last week, tagging US President Donald Trump in the post.
#savetoysrus . Not sure about the “Tycoon” title. I’m just a simple man who started as a dishwasher in this great country and lived the American dream. I want to save over 130,000 jobs. @realDonaldTrump https://t.co/lmsqaymncv
— Isaac Larian (@isaaclarian) April 13, 2018
Larian had initially tried a crowdfunding campaign to save the US operations of the business, but the campaign fell around $US800 million ($1.01 billion) short of its $US1 billion target.
SmartCompany has contacted Toys ‘R’ Us Australia for comment on a sale of the Australian and Asian business operations.