CAPE TOWN - Fin24 reports that South African Toys 'R' Us and Babies 'R' Us business is booming, despite its global affiliate's colossal debt and filing for bankruptcy.
This comes after Toys 'R' Us US listed debt and assets of more than $1 billion each in Chapter 11 documents Monday in U.S. Bankruptcy Court in Richmond, Virginia.
The company's filing for bankruptcy is the result of debt from a previous buyout and aggressive competition from online shopping. The company follows in the footsteps of fellow retailers who have filed for creditor protection this year.
These companies include Payless Inc., Gymboree Corp. and Perfumania Holdings Inc., all of which are using the Chapter 11 process to close under-performing stores and expand online operations. Significantly, the South African Toys 'R' Us is unaffected by the US affiliates bankruptcy as it functions independently.
In addition, Toys 'R' Us South Africa was proud to announce their positive outlook. In a statement on Tuesday, the retailer revealed its plans to expand its national footprint by opening more stores in Gauteng, the Western Cape, the North West Province and Mpumalanga.
"Toys 'R' Us and Babies 'R' Us SA are well positioned to achieve our target of adding seven more stores to our portfolio", Toys 'R' Us and Babies 'R' Us Marketing Manager, Nicole Annells told Fin24.
"Increasing the brand's footprint in these areas strengthens our presence and opens further growth opportunities in Southern Africa".
The new stores locations:
1. Table Bay Mall (September)
2. Waterfall Mall, Rustenburg (September)
3. l'langa Mall, Nelspruit (October)
4. Menlyn Park Shopping Centre (October)
5. Mall of Africa (October)
6. Cavendish (October)
7. Clearwater (November)
- BUSINESS REPORT