Toys’R’Us in Spain continues to resist. A group of investors, both external and of the current management team, have agreed to buy the assets of Toys’R’Us Iberia and announced that the company will keep «all stores» open both in Spain and in Portugal and maintain all 1,300 jobs in both countries.
The company entered a global crisis last year, filing for bankruptcy in the US & UK lagged by huge indebtedness and a falling sales due to competition from e-commerce. In Spain, however, the company has been more successful and has managed to find a group of investors willing to take on the operation. In March 2018, Toys’R’Us Iberia Real Estate (owned by Toys’R’Us Iberia), voluntarily requested bankruptcy protection for the 26 properties they own. As a result, the stores continued to operate normally on the Iberian peninsula.
The Portuguese investment company that has agreed to buy 100% of the Spanish subsidiary is Green Swan and will be doing so along with part of the current management team. Green Swan, represented by Paulo Andrez, will keep 60% of the firm, while the current managers will own the remaining 40%. The total investment volume reaches around €80M in 4 years. The group will also see changes in its management with Paulo Sousa Marques becoming the new CEO of Toys’R’Us Iberia.
The Spanish subsidiary had revenues of €198M in 2016 and a net loss of €1.67M (compared to a loss of €2.02M in 2015).