The Asia Pacific office of the global toy retailer Toys “R” Us assured its business partners and customers that its operations will continue, despite the bankruptcy filing of its US counterpart earlier this week.
“The company’s operations outside of the US and Canada, which include operations in Asia, Australia and Europe, are not part of the Company’s financial restructuring,” Toys “R” Us Asia Pacific President Andre Javes said in a statement sent to retail partners on Wednesday, September 20. “Toys ‘R’ Us is open for business and is continuing its operations in the normal course around the world.”
Toys “R” Us Inc. had been struggling to cope with the fast-changing demands of consumers, especially at the heart of the e-commerce boom. It filed for bankruptcy to restructure its company’s $5-billion worth of long-term debt on Monday, September 18.
The move came at an inopportune time as the holiday season, which drives up to 40 percent of the company’s total yearly sales, was about to kick in.
In the Philippines, Robinsons Retail Holdings Inc. (RRHI), part of the JG Summit Group, holds the franchise for the local operations of Toys “R” Us through its subsidiary, Robinsons Toys, Inc. (RRHI is a sister company of Entrepreneur Philippines’ publisher, Summit Media).
Toys "R" US in the Philippines has been enjoying robust growth since it began operations in 2006. Unlike US shoppers who have embraced online shopping, brick-and-mortar toy stores continue to be the dominant retail choice for most Filipinos according to business intelligence firm Euromonitor International.
Toys “R” Us in the Philippines has 34 standalone branches and 44 toy box outlets typically found inside Robinsons Department stores nationwide.
“We will continue to provide great service and a wide assortment of toys especially for this holiday season,” Toys “R” Us Philippines General Manager Celina Chua said in a statement.
Elyssa Christine Lopez is Entrepreneur.com.ph's staff writer. Follow her on Twitter @elyssalopz