Business & Tech
Toys R Us Finds Buyers For European Stores
Smyths Toys will buy the Wayne-based company's operations in 3 European countries for $194 million.
WAYNE, NJ — Toys R Us will sell stores in three European countries to an Irish-based counterpart, the company announced recently.
Toys R Us will sell operations in Germany, Austria, and Switzerland to Smyths Toys for $194 million, the Wayne-based company announced.
Smyths Toys is a family-owned business that owns more than 100 stores in the United Kingdom and Ireland.
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Stores in those countries are expected to generate nearly $27 million this fiscal year, according to Toys R Us.
Toys R Us also announced recently that it would sell shares of its Canadian operations for $233 million to Fairfax Financial Holdings.
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Both transactions were slated to be heard, and possibly approved, in U.S. Bankruptcy Court Tuesday morning.
Toys R Us has slowly halted business at its 735 U.S. stores since it announced March 15 that it was "winding down" its U.S. operations.
Toys R Us announced on that date that it would sell or close all of its 735 U.S. stores. Liquidation sales are going on at every store that is still open. Some Babies R Us stores have already closed.
Toys R Us filed for Chapter 11 bankruptcy protection in federal court in September. The filing came amid slumping sales and mounting debt, which grew to about $5 billion. The once-popular chain faced increasing competition from Amazon, Walmart and Target. The chain was set to close about 180 of its stores, or about 20 percent.
A federal bankruptcy judge ruled late last year that Toys R Us may pay 17 executives about $14 million in incentive bonuses if it hits a certain earnings amount. Attorneys representing the company argued that the bonuses would help executives focus on increasing sales during the past holiday season.
Related: Toys R Us Files Chapter 11 Bankruptcy, Outlines Strategy
Related: Everything Must Go: NJ Toys R Us, Babies R Us Closing Sale On Now
With reporting by Kara Seymour and Eric Heyl, Patch Staff
Email daniel.hubbard@patch.com. Get Patch breaking news alerts sent right to your phone with our new app. Download here.
Photo: Getty Images
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