Toys "R" Us Canada unaffected by U.S. liquidation, but will try to find a buyer for 82 stores
Toys "R" Us Canada says it is unaffected by the bankruptcy proceedings of its U.S. parent, but will nonetheless pursue a possible sale of the Canadian arm and all of its stores here.
In a release following news that the iconic U.S. toy chain plans to liquidate 740 stores, the retailer's Canadian arm says its 82 Canadian stores "remain open for business in the normal course."
Toys "R" Us Canada is managed here, "operates autonomously from U.S. operations, and continues to be a stable and profitable market leader in Canada," the release said.
It said the Canadian arm has enough cash to continue funding itself "without disruption."
The Canadian chain will continue to pay its vendors and employees while offering customers "a broad selection of the most exciting, must-have toy and baby products."
"The company continues to honour all customers programs, including gift cards and warranty, return and exchange policies," the chain said.
Unless a buyer can be found for the U.S. business, all 740 stores there are likely to close. The chain is likely to also liquidate its businesses in Australia, France, Poland, Portugal and Spain
But despite the relative health of the Canadian arm, as part of U.S. bankruptcy proceedings, the chain and its advisers "are pursuing a going concern sale of Toys "R" Us Canada and are in active discussions regarding a transaction that would result in an acquisition of the entire Canadian business."
The name of the unnamed potential buyer isn't known, but a Bloomberg report Thursday suggested it was being led by toy manufacturer MGA Entertainment, which owns the Little Tikes and Bratz brands.