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The Australian arm of Toys 'R' Us says it is business as usual despite the potential closure of all the giant retailer's US stores.
Reports out of the US suggest the bankrupt toy retailer is preparing to sell or close all 885 stores in the US chain, putting 33,000 jobs at risk.
However, a statement issued by Australian management said, "the announcement regarding Toys 'R' Us US relates to their US operations".
"Toys 'R' Us Australia stores are open for business and continue to serve customers," a spokesman said.
"Our gift cards, VIP club points, lay-buy, returns policy and other services remain unchanged."
Toys 'R' Us has been hammered by consumers flocking to online retailers like Amazon and changing tastes in the toy market.
The company announced last year it planned to close 20 per cent of its US stores as it struggled pay down the $8.4 billion debt it had been saddled with as part of a leveraged buy-out put together by private equity firms KKR and Bain Capital.
While the Australian arm said it was business as usual for its 39 stores, the Wall Street Journal quoted Toys 'R' Us chief executive David Brandon as telling staff the company was likely to liquidate operations in France, Spain, Poland and Australia as well.
In Britain, the remaining 75 Toys 'R' Us shops will close within six weeks, joint administrators for the retailer confirmed after they were unable to find a buyer for all or part of the business. About 3,000 jobs would be lost.
Reuters quoted a company insider as saying US creditors decided they could get more from liquidating assets of the toy seller, the largest in the United States and one of the best known in the world, rather than finding a way to keep the business alive.
Topics: company-news, retail, united-states
First posted