The Australian arm of global toy retailer Toys “R” Us has been forced to address concerns it is on the brink of failure, as its US stores prepare for liquidation.
Reports emerged that the US parent company has been weighed down by massive levels of debt and poor sales, with the US chain now set to be sold or wound up.
Media reports in Australia and abroad have quoted the company as saying that international branches, including the local business, are likely to follow suit.
However Toys “R” Us Australia, issued a statement on Facebook, saying that its “stores remain open” while the impact of the US parent’s failure is fully assessed.
“While we are saddened by the news regarding our US operations, in Australia we remain committed to delivering the best products, services and experiences possible to the many Toys “R” Us kids who have supported our business throughout the past 25 years,” the statement said.
“We are working through a range of options for our business locally and as always will relentlessly strive towards bringing fun, joy and happiness to the hearts and minds of our customers for many more years to come.
“Our stores remain open and our amazing staff are ready to serve you! Our Gift Cards, VIP club points, Layby, returns policy and other services remain unchanged, however if you have any worries at all please reach out to our customer service team for more information.”
Toys “R” Us has been operating in Australia since 1993, with 37 stores currently operating nationwide.
The specialist retailer is the latest in a long line of bricks and mortar retailers to struggle with lagging sales and the digital transition, with Retail Food Group publicly battling a number of operating concerns. Meanwhile the likes of Gap, Allphones, Masters and Dicks Smith Electronics are among the high-profile businesses to have hit the wall in recent years.
For remaining retailers, Katja Forbes of experience design firm syfte has previously shared five tips to avoid going down the same ill-fated path.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.