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S’pore Toys ‘R’ Us stores not affected by bankruptcy proceedings in US

SINGAPORE — The Asian arm of popular toy-store chain Toys ‘R’ Us Inc has reassured customers that its shops in the region would not be affected in their operations, after the retail giant filed for bankruptcy protection in the United States and Canada.

A shopper in a Toys "R" Us store dressed up as a Star Wars character during the popular "Force Friday". Toys "R" Us (Asia) said the stores in the region would remain open even though the US parent was filing for bankruptcy. Reuters file photo.

A shopper in a Toys "R" Us store dressed up as a Star Wars character during the popular "Force Friday". Toys "R" Us (Asia) said the stores in the region would remain open even though the US parent was filing for bankruptcy. Reuters file photo.

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SINGAPORE — The Asian arm of popular toy-store chain Toys ‘R’ Us Inc has reassured customers that its shops in the region would not be affected in their operations, after the retail giant filed for bankruptcy protection in the United States and Canada. 

In a statement on Tuesday (Sept 19), Toys ‘R’ Us (Asia) — a joint venture between the US parent company and Fung Retailing — said that it is not part of the US company’s financial restructuring, and its stores “are open for business”.

This is because Toys ‘R’ Us (Asia) operates as a separate legal entity and is financially independent from all other Toys ‘R’ Us operating companies around the world. 

It added that Toys ‘R’ Us Singapore, which has 11 stores islandwide and 350 employees, plans to “further expand”. Three new outlets had opened in the last eight months at Parkway Parade, Waterway Point and Westgate malls, and last month, it completed refurbishing its store at Tampines Mall.

It is also looking to hire another 150 people to gear up for the busy Christmas season. 

The reassurance came after Toys ‘R’ Us Inc, the leading toy and baby products retailer in the US, filed for bankruptcy protection late on Monday — a sign of the challenges that traditional retailers face as shoppers turn to online sites for buys.

Toys ‘R’ Us Inc’s chief executive officer Dave Brandon said that the company is planning to work with “debtholders and other creditors to restructure the US$5 billion (S$6.7 billion) of long-term debt” on its balance sheet, in order to continue serving customers online and at physical stores.

Operations outside the United States and Canada, including about 255 licensed stores and joint ventures in Asia, which are separate entities, are not part of the court proceedings.

In its statement on Tuesday, Toys ‘R’ Us (Asia) said it directly operates 226 stores across South-east Asia and China, which can be found in Singapore, Malaysia, Thailand, Brunei, Hong Kong and Taiwan. It also licenses 35 outlets in the Philippines and Macau.

When TODAY visited the Toys ‘R’ Us branch at United Square on Tuesday, consumers voiced their surprise at the news in the US, and offered a glimpse into their shopping habits.

Ms Chua Poh Suan, 31, a personal assistant, did not expect the toy retailer to go under in the US, saying that the outlets in Singapore have no shortage of customers. 

“It always looks like there are many people (in stores here) ... especially after working hours and on the weekends, so we assume that business should be good,” she said, adding that she visits the store once a week with her two children.

Mr Shim Jan Yuen, 38, an audio-visual manager who owns five Nerf gun blasters costing from S$40 to S$90 each and often engages in Nerf gun battles with colleagues in office, said that it is more convenient for him to go to Toys ‘R’ Us and buy these toys off the shelf.

Online shopping might not be a cheaper option, he said, because of the delivery charges. Other niche toy shops may also have a “limited inventory” and are often located in less accessible places. 

Chef Raymond Tay, 30, still sticks to shopping at Toys ‘R’ Us because he is particular about the safety and quality of toys for his one-year-old son, and felt that the chain provides the greatest assurance. 

However, there are patrons such as Ms Ann Chang, 37, who goes to Toys ‘R’ Us to check out the product range before going online to find similar and cheaper options for her two sons, who are aged six years old and eight months old. 

Ms Chang, who is self-employed, said: “It’s just more convenient (to shop online), because the kids ... go crazy in the toy store.” She suggested that Toys ‘R’ Us should set up more interactive play areas for children to enhance the shopping experience.

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