CAPE TOWN- Toy ‘R’ US stores in South Africa will be unaffected by closures in the US.
The iconic retailer is expecting to close many of its store in the US after the company announced it is failing to secure a buyer or reach a restructuring deal with lenders, putting 30 000 jobs at risk.
Toy ‘R’ US has confirmed that they are seeking approval to liquidate inventory of 735 American store.
All the stores are expected to be closed by the end of the year in the US.
Lenders have advised them to close more stores but the company is currently only closing one fifth of their stores.
Chief Executive David Brandon said that Toys ‘R’ Us is also likely to liquidate in France, Spain, Poland and Australia.
According to The Wall Street Journal which quoted Brandon as adding that the retailer also planned to sell operations in Canada, Central Europe and Asia.
Talks collapsed after lenders decided that Toys ‘R’ US did not have a reogranisation plan.
Lutz Muller, president of consultancy Klosters Trading Corp said that liquidation of smaller toy maker companies is much more painful, particularly if they relied on the supply of a major store.
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