Smyths bidding for Toys"R"Us Germany

Discussion in 'Transformers News and Rumors' started by Nevermore, Apr 13, 2018.

  1. Nevermore

    Nevermore It's self-perpetuating a parahumanoidarianised!

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    According to renowned German newspaper Frankfurter Allgemeine Zeitung (FAZ), Irish retailer Smyths is bidding for the German, Austrian and Swiss branches of Toys"R"Us:
    F.A.Z. exklusiv: Iren bieten für deutsches Geschäft von Toys ,R‘ Us

    Translation by me:

     
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  2. fschuler

    fschuler Post Count Inflated With Hot Air TFW2005 Supporter

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    Score one for the locals in Germany, Austria and Switzerland if that deal goes through. My local TRUs will probably be turned into Halloween stores...
     
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  3. tikgnat

    tikgnat Baweepgranaweepninnybong. TFW2005 Supporter

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    Everytime I go to Toys R Us in Hong Kong, it's really busy. While they have stuff that competes with a lot of the smaller toy shops elsewhere they have a load of stuff that only they have. So yeah, I would have been amazed if there was no future for at least the HK branch of TRU.
     
  4. Powerglide1991

    Powerglide1991 Autobot

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    Smyths buying them in Germany, Austria and Switzerland is really good news. Hope that means TRU might survive somewhat in the UK as well
     
  5. DJofSYN

    DJofSYN Active Member

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    In USA TRU doesnt offer many deals. Its much cheaper to buy items online as opposed to to walking in one of these stores. I very rarely go in there anymore so I can understand why they are losing their ground on the toy business.
     
  6. ZapRowsdower

    ZapRowsdower Disappointing everyone with each post! :D

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    There's a bid on 200 stores in USA and the Canadian arm from the Little Tykes owner, so there's a possibility that might go through. It doesn't look like he got his $1 billion from that gofundme campaign, though (I think he planned to purchase 400 stores, originally).

    In addition, there are plans to launch seasonal KB Toy Stores - the owners of the store chain are in talks with seasonal operators like GO! (they do the mall calendar shops) to try and launch KB by Xmas 2018! The idea is to capitalize on inventory intended for TRU (and to also take advantage of the reduced competition/void left by TRU's disappearance from retail). The plan is to do the stores just for the Xmas season, with the possibility of keeping the most profitable stores open longer (depending on sales and leasing agreements).

    They have 5 Billion in debt (because of the acquisition in 2005, which was purchased with some 5.3 billion in debt, only about $1.2 billion in actual cash down). This massive debt costs them some $400 million per year to "service" (presumably interest), which is the cash they would have used to update the stores, pay employees better, and offer better prices. According to the CEO, one plan (if they had the cash) was to create a play area for kids to try out new toys! :eek: 

    So don't think too badly of a company that's had absolute no chance from its sale in 2005. You can't recover from debt like that; especially when online competition heats up and a lot of toy sales are down due to the ever increasing popularity of technology like tablets and iPhone apps!
     
  7. borgified

    borgified Resistance is Futile!

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    Here's one of the many Canadian newspaper sites that I found to back up your claim (not to the extent of your post):

    Toys ‘R’ Us gets $890-million bid for U.S., Canada stores from MGA Entertainment
     
  8. Hoffman

    Hoffman Well-Known Member

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    HOT TAKE
     
  9. Nevermore

    Nevermore It's self-perpetuating a parahumanoidarianised!

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    And sold! Smyths is the new owner of Toys"R"Us in the "DACH" region with 68 stores in Germany, 15 in Austria and 10 in Switzerland. The exact sum for which Smyths has purchased the branches in these three countries hasn't been disclosed.

    According to Smyths, all stores, employees and the management are going to be retained (at least for the time being), which is good news especially for the (underpaid) staff. No idea what Smyths is intending for payment, but at least those people now have a future.
    Ireland's Smyths Toys to buy Toys 'R' Us in Germany, Austria,...
    Smyths Toys to buy Toys R Us in Germany, Austria and Switzerland
    Smyths Toys to take over Toys R Us stores in Germany
     
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  10. Powerglide1991

    Powerglide1991 Autobot

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    I\'d be very surprised if Smyths didn\'t buy a couple of the UK stores, would make sense for them.
     
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  11. optimusmegas

    optimusmegas Soleron

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    Would be nice if the US stores would stop rejecting bids and make an attemptto keep those people employed amd stores open...

    Whats the latest on the KB return?
     
  12. JohnRedcorn

    JohnRedcorn Well-Known Member

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  13. optimusmegas

    optimusmegas Soleron

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  14. Mabus

    Mabus Well-Known Member

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    I like Smyths and have bought many a TF from them however they always seemed to lack the wide selection TRU have, but they tended to have more of the latest.

    My biggest gripe is that they had Titan Masters Misfire and Slugslinger listed for release last year and then bailed on them. I think they also had Overlord listed too but bailed. 
     
  15. Lazerwave

    Lazerwave My Most Prized Treasure

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    So basically Toysrus is just done in the states and the UK.
     
  16. jackgaughan

    jackgaughan Interner Soldier

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    I hope that means they take over TRU UKs too, I mean, they might as well, also they probably get more new products than TRU ever did so...
     
  17. Hoffman

    Hoffman Well-Known Member

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    Wasn't the UK administration unrelated to the US business though? It sounds like the UK business was in really bad shape. People are buying up these other international groups because they are actually profitable.
     
  18. Knightsword

    Knightsword Fire in the North TFW2005 Supporter

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    Jobs likely wont be saved, Smyths will likely start at the store management level and work their way down replacing people.
     
  19. Hoffman

    Hoffman Well-Known Member

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    While they may very well replace upper management, I sincerely doubt they're going to fire a bunch of store-level staff just to hire new, similarly experienced people.
     
  20. Aernaroth

    Aernaroth <b><font color=blue>I voted for Super_Megatron and Veteran

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    Sorry, maybe this isn't immediately obvious, but will they be converted to Smyth's or does this purchase include the rights to Toys R Us branding in those European countries?
     

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