The bankruptcy filing of Toys ‘R’ Us, Inc. earlier this week will not affect Asian branches of the international toy seller it has emerged, after the company responsible for the region’s operations stressed its financial independence from the U.S. company.
Citing a need to restructure its outstanding debt amid a tough time for physical stores, Toys ‘R’ Us, Inc. filed for bankruptcy on Tuesday affecting only stores under its direct control, in Canada and the U.S. It said that the move will allow it to accumulate enough capital to invest in long-term growth.
The company responsible for Asian operations, Toys ‘R’ Us (Asia), said not only it won’t be affected by the filing, but that it is investing heavily in the region to fuel its commercial expansion across China.
In a statement, Toys ‘R’ Us (Asia) said it was still “open for business.”
“We are a financially robust and self-funding retail operation, which continues to significantly grow and invest in this region,” said the firm’s president, Andre Javes, according to the statement. “Every year we are opening new stores in all our markets and particularly in China where we now operate over 135 stores and will be opening another 22 in the coming weeks.”
Toys ‘R’ Us (Asia), a separate business entity to its U.S. namesake, is a joint venture between Toys ‘R’ Us, Inc. and Hong Kong-based Fung Retailing Ltd. It operates some 226 stores across the greater China area and Southeast Asia, and licenses 35 stores in the Philippines and Macau.
Toys ‘R’ Us, Inc.’s filing last month is reportedly one of the largest ever by a specialty retailer and will affect some 1,600 stores in North America and as many as 64,000 employees. It comes shortly before the retailer gears up for the Christmas holiday season, its most lucrative time of the year.
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