Toys R Us Australia Enters Administration

Transformers News: Toys R Us Australia Enters Administration

Monday, May 21st, 2018 6:05AM CDT

Category: Company News
Posted by: Qwan   Views: 9,183

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Yes, it's back again folks. The Toys R Us saga continues, this time in Australia as the company's branch in that country enters voluntary administration. Last we heard, Australian Toys R Us stores would be continuing as normal despite the US branch shutting down, and up until now they've been chugging along, but it seems that's about to change.

According to the Financial Review, TRU Australia had been looking for a buyer, but the last bidder has recently withdrawn their offer and directors have chosen to enter voluntary administration by the firm McGrathNicol. This is how the Financial Review describes the Australian branch's dire financial straits:

[...] the Australian business has racked up losses of more than $100 million over the last seven years and could not continue as a stand alone entity.

Toys 'R' Us Australia lost $7.6 million in 2017 on sales of $276.4 million and had net liabilities of $6 million, according to its latest accounts.

For those Australian collectors wondering how this will affect purchasing from Toys R Us in the coming times, here's the rundown on what he have so far.

    - Both Toys R Us and Babies R Us should continue operating while McGrathNicol "urgently explores options for a sale".
    - Refunds will no longer be offered on sold items
    - Gift cards and vouchers will be honoured, as long as customers spend an additional equivalent amount (i.e. to redeem a $50 gift card, a customer would need to purchase $100 worth of product).
    - Online orders will be delivered, provided the order has been fully paid for and the stock is available.
This is definitely sad news to hear, but we still want to hear your thoughts on it. How do you think this might affect the collecting climate in the future? Let us know on the Energon Pub Forums, and keep an eye on Seibertron.com for updates on this or any other Transformers-related news.

Transformers News: Toys R Us Australia Enters Administration
Credit(s): Financial Review
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Re: Toys R Us Australia Enters Administration (1960643)
Posted by ZeroWolf on May 21st, 2018 @ 6:50am CDT
How sad to see a giants last few breaths. So the question I now wonder is, what was done differently with the likes of the Canadian branch that allowed it to weather the same storm that took everything else. I would have thought that all the different branches would have faced the same problems.
Re: Toys R Us Australia Enters Administration (1960646)
Posted by dragons on May 21st, 2018 @ 7:11am CDT
Wow never saw toysrus located inside mall smallest ToysRus i saw I’m surprised there was no good news for that part of country of toysrus to many drop outs wander what’s making them do so
Re: Toys R Us Australia Enters Administration (1960647)
Posted by Aimless Misfire on May 21st, 2018 @ 7:11am CDT
I live in America unfortunately & I only have 1 Walmart close by. And that store is the biggest joke that never restocks Transformers. So I know what it's like, makes you want to quit & say to hell with it. No stores around & online is nothing but a ridiculously over priced scalper hell. :-(

I still can't find 1 freakin Cyber Battalion Shockwave. It's friggin ridiculous!
Re: Toys R Us Australia Enters Administration (1960651)
Posted by Qwan on May 21st, 2018 @ 7:32am CDT
dragons wrote:Wow never saw toysrus located inside mall smallest ToysRus i saw I’m surprised there was no good news for that part of country of toysrus to many drop outs wander what’s making them do so

I've actually been to this particular Toys R Us! (I chose it for the picture as kind of a tribute to "my" TRU.) Surprisingly, it's just as big inside as any other Toys R Us stores I've been to, despite being technically inside a mall. Honestly, I'll be sad to see it go, if the whole branch does end up closing down fully... :(
Re: Toys R Us Australia Enters Administration (1960659)
Posted by Rated X on May 21st, 2018 @ 8:38am CDT
Domino effect...
Re: Toys R Us Australia Enters Administration (1960689)
Posted by Editor on May 21st, 2018 @ 11:09am CDT
ZeroWolf wrote:So the question I now wonder is, what was done differently with the likes of the Canadian branch that allowed it to weather the same storm that took everything else.


Basically, different laws and internal inventory management.

Had the American division been able to leverage the Canadian, to load it up with unsustainable debt loads for short term profits it likely would have, but different regulations stopped that from happening. This ment the Canadian division ran itself as a leaner operation. The more the US side struggled, the more the Canadian side looked to protect itself.

Stores would operate with lower stock levels than American ones, depending on weekly restocks instead of fully stocked back rooms, as well as other means to keep operational costs lower. All in all, moves that kept it in the black and financially stronger. The financial protection the Canadian division entered last year was just protective, to ensure suppliers shorted by the American division couldn't place undue pressure, (demands for payment of US orders/short shipping Canadian stock for leverage) that would undermine the ability to operate independently.
Re: Toys R Us Australia Enters Administration (1960692)
Posted by Fires_Of_Inferno on May 21st, 2018 @ 11:13am CDT
ZeroWolf wrote:How sad to see a giants last few breaths. So the question I now wonder is, what was done differently with the likes of the Canadian branch that allowed it to weather the same storm that took everything else. I would have thought that all the different branches would have faced the same problems.


Not quite sure how it is in Australia, but in Canada, Toys R' Us doesn't really have much in the way of competition. Walmart has only a small toy section, Real Canadian Superstore doesn't have much in the way of a toy section anymore. Other places you'd find toys are drug stores or comic/collectable stores. So Toys R' Us is still pretty busy. When I went down there last Thursday the poor cashier was run ragged with how busy it had been that day!

I don't think it's so much something they actively did, as much as it is the retail environment that they're part of that contributes to them sticking around up here. Of course, I could be way off.
Re: Toys R Us Australia Enters Administration (1960709)
Posted by Galactic Prime on May 21st, 2018 @ 12:18pm CDT
It was explained earlier what the Canadian side. It's managed better, it runs a better operation and there's no competition for them here in Canada.

We have TRU and Walmart, that's it and Walmart is horrible for stock.
Re: Toys R Us Australia Enters Administration (1960782)
Posted by Burn on May 21st, 2018 @ 5:07pm CDT
What's disappointing is that while TRU AU has plenty of competition in terms of toys (Target, K-Mart, Big W, Myer and on a smaller scale, Toyworld), from a Transformers perspective K-Mart and Target have recently raised their prices to match TRU AU, which means they were all mostly on par.

TRU also has the better distribution with all stores Australia wide receiving their stock at the same time, while the others slowly trickle out around the country.

Plus there's the Takara Tomy stuff ...
Re: Toys R Us Australia Enters Administration (1960814)
Posted by Qwan on May 21st, 2018 @ 7:30pm CDT
Burn wrote:What's disappointing is that while TRU AU has plenty of competition in terms of toys (Target, K-Mart, Big W, Myer and on a smaller scale, Toyworld), from a Transformers perspective K-Mart and Target have recently raised their prices to match TRU AU, which means they were all mostly on par.

TRU also has the better distribution with all stores Australia wide receiving their stock at the same time, while the others slowly trickle out around the country.

Plus there's the Takara Tomy stuff ...

Pretty much this. Toys R Us AU, through absolutely no effort of their own, has somehow managed to end up on par with other retailers price-wise since the start of PotP (in the worst possible way, mind you). And since their management of actual stock is a bit better overall, they're kind of the most reliable option for new Transformers right now, unless you want to gamble on figures coming to a local branch of the lower-priced but less reliable Big W.

My nearby TRU doesn't have any Takara stuff, but I have seen it around in other ones. Ranging from Unite Warriors Superion to MP Road Rage and Star Saber, TRU AU can be a really good place to get Transformers! ...Or I guess, will have been a really good place to get Transformers.
Re: Toys R Us Australia Enters Administration (1960835)
Posted by Burn on May 21st, 2018 @ 8:36pm CDT
Before I went to the airport my trip to the Gold Coast on Friday, I ducked into Big W to see what they had (hoping for Wave 2) ... nothing new.

Once I got back and left the airport I headed to TRU in the hope they had Wave 2, but at the very least, knowing they'd be the place to help me get POTP Rodimus Prime, and I knew they had 20% off that weekend.

And as expected, they helped me secure Rodimus Prime (with 20% off), no wave 2 but that's not surprising as they've been located more often at K-Mart.

As someone who lives in a regional area and can often wait four weeks or more before figures reach me (after being spotted in metropolitan areas), I could always rely on TRU to have stock, sure, they were always more expensive, but at least they could be relied upon and they had more sales than the major departments stores.
Re: Toys R Us Australia Enters Administration (1960846)
Posted by Qwan on May 21st, 2018 @ 9:19pm CDT
At the very least, TRU has recently been where I secure every new non-Deluxe figure, since the prices are basically the same across the board for all other size classes. I've only been metropolitan myself since February this year, but even just in those three months, of the seven Transformers I've bought over half have been from TRU. Battleslash boys? Only place I've ever seen 'em. Jazz and Dreadwing? There was a sale a while ago and they were $30, not ideal but still on par with the cheapest other stores. I'm planning to go out and look for Wave 2 in the next couple days, but honestly I'm probably only going to check TRU.

Hopefully, an emergency sale for TRU AU does end up happening, and the company doesn't collapse entirely. But if worst comes to worst, maybe it'll mean I can pick up some Studio Series at one of the famous Australian "Everything must go! Up to 20% off!" discounts.
Re: Toys R Us Australia Enters Administration (1962609)
Posted by -Kanrabat- on June 1st, 2018 @ 2:03pm CDT
It's now done deal and official. Toys R Us is now 100% CANADIAN:

http://email.toysrus.ca/H/v200000163bc5 ... faecf28314

[quote]June 1, 2018

To Our Valued Canadian Customers:

TOYS“R”US CANADA-WE ARE OFFICIALLY HERE TO PLAY AND HERE TO STAY!

Toys"R"Us (Canada) Ltd. announces the completion of the acquisition of its business by Fairfax Financial Holdings Limited. Toys R Us Canada is now a proudly Canadian-owned and operated business employing more than 4,000 Canadians and Canada’s only exclusive coast to coast business with over 80 locations dedicated to kids and babies across Canada.

As Canada’s leading toy and baby retailer, we are thrilled to be part of the Fairfax family and to now operate as a reinvigorated company that is 100% Canadian. I would like to extend a heartfelt thank you to our valued customers for their loyalty with us over the last several months. We are passionate about our business and want Canadians to know that we are champions of play with the newest trends and hottest toys in our stores. We believe that parenting is an adventure and Babies“R”Us Canada will be there along the journey to help parents.

Over the next few months, we will roll out exciting new innovations that have proven successful at our Langley, British Columbia and our South Barrie, Ontario stores including dedicated play areas, interactive stations for kids and mobile pay. Beginning this month, we are delighted to host 10 Starlight Dashes across Canada in which seriously ill children from the Starlight Children’s Foundation will have three minutes to race around the store and fill their carts with toys.

This summer, we will be moving full steam ahead across Canadian communities with the message that we’re here to play, here to stay! At Toys“R”Us we believe that moments of joy, endless possibilities of fun and the wonder of imagination all happen through play. We will be challenging kids, parents, grand-givers and kids at heart to embrace the power of play. Look for play events at your local store. All customer programs like Baby Registry, “R”Club™ loyalty and wish list are running just as customers know and love. Gift cards purchased in Canada can be redeemed anytime online and in any store location across the country.

Thank you for choosing to shop at Toys“R”Us Canada and Babies“R”Us Canada! We are excited about our future and look forward to inviting you back to see what’s new with us. Visit www.toysrus.ca and www.babiesrus.ca for exciting announcements and new events happening throughout the summer.



Melanie Teed-Murch, President
Toys“R”Us and Babies“R”Us Canada
[/quote]
Re: Toys R Us Australia Enters Administration (1962610)
Posted by ZeroWolf on June 1st, 2018 @ 2:07pm CDT
Lucky you :-P seriously though at least it's nice to hear good things associated with the name now.
Re: Toys R Us Australia Enters Administration (1962611)
Posted by william-james88 on June 1st, 2018 @ 2:27pm CDT
Toysrus Canada is 100% Canadian, but there is still toysrus elsewhere in the world. What I find ery bizarre is that I recieved this e-mail from toysrus last month.
Re: Toys R Us Australia Enters Administration (1962617)
Posted by Galactic Prime on June 1st, 2018 @ 4:10pm CDT
william-james88 wrote:Toysrus Canada is 100% Canadian, but there is still toysrus elsewhere in the world. What I find ery bizarre is that I recieved this e-mail from toysrus last month.


Not the same email, same subject line. The one a month ago was announcing the purchase, the one today was stating it went through successfully.
Re: Toys R Us Australia Enters Administration (1962637)
Posted by -Kanrabat- on June 1st, 2018 @ 7:39pm CDT
Galactic Prime wrote:
william-james88 wrote:Toysrus Canada is 100% Canadian, but there is still toysrus elsewhere in the world. What I find ery bizarre is that I recieved this e-mail from toysrus last month.


Not the same email, same subject line. The one a month ago was announcing the purchase, the one today was stating it went through successfully.


That's why it's the END of the Canadian saga.

As for the rest of the world, "to be continued" I guess.
Re: Toys R Us Australia Enters Administration (1962838)
Posted by william-james88 on June 3rd, 2018 @ 1:21pm CDT
We knew that Fairfax Financial had won the bidding for Toysrus Canada and now all the documents have been signed and Toysrus Canada is now fully owned by Fairfax. The later being a Canadian company means that Toysrus Canada is now 100% Canadian with no ties to the US, which is quite a twist since it started as a subsidiary of what was once a prominent American business. Now, simply due to the fact that competition was limited in Canada for toys of any kind (with a tough barrier of entry for any potential competition due to Canada's ridiculously low population density), Toysrus Canada has always been profitable. But all along, its earnings were going to the US parent so there was no chance for reinvesting in the Canadian business. But that is over now, so we can simply imagine how this company which was already great will now have an influx of cash for reinvesting and improving.

Toysrus Canada aims to reinforce the fact that they are sticking around and to do so, they are offering events every week-end in June with free 5$ giftcards to anyone who shows up, along with free gifts like lego kits you can build in the store and take home with you. Plus, if kids bring in their report card on the last Saturday of June, they get a gift.

These are all shown in the image below and more details can be found here.



Along with that, we have a message from the Toysrus Canada president, Melanie Teed-Murch, about Toysrus Canada beig here to stay followed by a statement from Prem Watsa, CEO of Fairfax, which gives a quick look at the business figures that went into his company's decision to buy Toysrus. However, all this joy on the Canadian side is inverted when looking at the US where the Toysrus head office is also being cleared with everything on sale, including Geoffrey



Message from Toysrus Canada President:

[quote]TORONTO (June 1, 2018) – Toys "R" Us (Canada) Ltd. announces the completion of the previously announced acquisition of its business by Fairfax Financial Holdings Limited. As a result of the acquisition, Toys R Us Canada is now a proudly Canadian-owned and operated business employing more than 4,000 Canadians and Canada’s only exclusive coast to coast business with over 80 locations dedicated to kids and babies across Canada.

“As Canada’s leading toy and baby retailer, we are thrilled to be part of the Fairfax family and to now operate as a reinvigorated company that is 100% Canadian,” said Melanie Teed-Murch, President of Toys "R" Us and Babies "R" Us Canada. “I would like to extend a heartfelt thank you to our customers for their loyalty and for choosing to shop at Toys “R” Us and Babies “R” Us. We are passionate about our business and want Canadians to know that we are champions of play with the newest trends and hottest toys in our stores. We believe that parenting is an adventure and Babies “R” Us Canada will be there along the journey to help parents. We are also excited about our future and look forward to inviting customers back to see what’s new in store.”

This summer, Toys “R” Us will be moving full steam ahead in getting the message to Canadians that we’re here to play, here to stay! “We will be challenging kids, parents, grand-givers and kids at heart to embrace the power of play. At Toys “R” Us, we believe that moments of joy, endless possibilities of fun and the wonder of imagination all happen through play,” said Teed-Murch.

The company also remains committed to its philanthropic initiatives and its support of communities across Canada. Each year, the company raises nearly $2 million to support its partners through the generous support of its customers and team members. Beginning this month, Toys “R” Us will host 10 Starlight Dashes across Canada in which seriously ill children from the Starlight Children’s Foundation will have three minutes to race around the store and fill their carts with toys.

All customer programs like Baby Registry, “R”Club™ loyalty and wish list are running just as customers know and love. Gift cards purchased in Canada can be redeemed anytime online and in any store location across the country. In the coming months, the company will roll out exciting new innovations that have proven successful at recently opened stores in Langley, British Columbia and Barrie, Ontario. This format includes dedicated play areas, interactive stations for kids and mobile pay. The evolving omnichannel strategy connects customers wherever, whenever and however they want through our webstore, mobile and store shopping experience.

Visit www.toysrus.ca and www.babiesrus.ca for exciting announcements and new events happening throughout the summer.[/quote]

Statement from Fairfax CEO:

[quote]“Toys “R” Us has a 34-year track record of standalone profitability in Canada (over the last three years, revenue has exceeded C$1 billion annually and, for the last nine years, EBITDA has exceeded C$100 million annually). With over two decades working in Canada for Toys “R” Us, Melanie has the experience necessary to lead the dedicated employees of Toys “R” Us for the benefit of all stakeholders, kids, families and communities across Canada,” said Prem Watsa, Chairman and CEO of Fairfax. “We look forward to building for the long-term and allowing the Toys “R” Us team in Canada to re-invest in the business, instead of the past history of just sending earnings to the U.S.” [/quote]
Re: Toys R Us Australia Enters Administration (1962839)
Posted by Munkky on June 3rd, 2018 @ 1:32pm CDT
Well it's good to see some light at the end of the tunnel. I'll miss my UK stores, but I wish all the best for Toys R Us Canada and hope they continue to do well.
Re: Toys R Us Australia Enters Administration (1962843)
Posted by ZeroWolf on June 3rd, 2018 @ 1:44pm CDT
Maybe one day the canada will seek to branch out once again, and revisit the uk but with proper fiscal planning and good ideas...that is unless Symths conquers the toy world
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