More updates on the state of Toys ‘R’ Us are coming in, and buyers for the toy retailer operation are starting to trickle in.
In Central Europe, Smyth Toys has acquired Toys ‘R’ Us’ operations in Germany, Austria and Switzerland for €80 million (on a cash-free and debt-free basis) and an estimated aggregate purchase price of €79 million.
Meanwhile, Isaac Larian, chief executive officer, MGA Entertainment, is ending his efforts to purchase the Canadian arm of Toys ‘R’ Us and is cushioning his formerly rejected bid for the toy retailer’s U.S. arm, according to The Los Angeles Times.
According to the source, Larian is “satisfied” with the idea that 82 Canadian stores may be operated by Canadian investment firm Fairfax Holdings. Fairfax Holdings and Toys R’ Us reached a tentative agreement to buy the stores for $237 million.
The bankrupt toy retailer rejected a bid from the toy billionaire for $215 million. Larian’s bid included $675 million to operate 200 U.S. locations, a point that was not included in Fairfax’s bid. Larian and his team plan to spend the next week re-evaluating the value of the store as well as unnamed Toys ‘R’ Us IP. Several sources have named Li & Fung as a top contender for the retailer’s Asian operations.