, Australia
108 views
Logo from Toys "R" Us ANZ Limited's LinkedIn profile.

Toys ‘R’ Us ANZ to exit UK, focus on Australia

The UK business expansion is not within the company’s reach. 

Toys ‘R’ Us ANZ finalised deals with Tru Kids (TRUK) for a smooth exit and transition from its business and associated License in the UK, the company said in a disclosure.

Under the agreements, Toys ‘R’ Us will transfer ownership of all UK business assets to TRUK in settlements of its around $1.2m (A$1.8m) outstanding balance which TRUK provided to support the transition. TRUK will release Toys ‘R’ Us and its subsidiary entities from all remaining liabilities and obligations.

The expansion of the UK division will require around $4.6m (A$7m) of initial working capital which would result in an initial operating loss of $3.9m (A$6m) in the first 12 months, an investment which would be “noth within [Toys ‘R’ Us’] reach.”

ALSO READ: Toys “R” Us launches new experience-driven store in Changi Airport

“The TOYs UK division requires significant operational and financial resources to ensure its success in the market. As I outlined last year, we are transforming the TOY business model to reduce its overheads and its cost base to the right size to ensure it has a sustainable base to build from,” Toys ‘R’ US ANZ Limited CEO Penny Cox.

“We’re fortunate to have a strong relationship with TRUK which has enabled us to implement a smooth exit of the UK market to allow TOYs to focus its efforts on the transformation and growth of our Australian activities through the creation of new channels to market,” Cox added.

The companies also entered a 12mont services deed where Toys ‘R’ Us will render operational support to the UK business, guided by TRUK to facilitate the license transfer.

$1 = A$1.53

Follow the link for more news on

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Why China’s dairy industry slowing down
Economic and demographic forces are amongst the major factors slowing the industry.
Alibaba merges e-commerce units
It will unify the Taobao and Tmall Group with the Alibaba International Digital Commerce (AIDC) Group.
E-commerce
Rakuten and L’Oréal Japan partner to deliver personalised beauty solutions
The partnership will leverage Rakuten’s AI and marketing data alongside L’Oréal’s advanced beauty technology.
Technology

Exclusives

Mars Wrigley bets on Asia’s chocolate boom
The US company expects the region’s rising middle class to eat more M&M’s and Snickers.
Stores
Food Innovators to serve up ‘anime’ diners in Singapore
CEO Kubota Yasuaki expects the city-state to become their gateway to other Asian countries.
Brands told to come clean about beauty care
Consumers are more discerning and can easily spot fake ingredient claims.
Swarovski cracks TikTok to scale luxury amongst Gen Zs
The Austrian glassmaker is working with influencers to connect with the Singaporean market.