The collapse of the American toy retailing giant Toys R Us has had an impact on the European market, as its central European division ran 90 stores in Germany, Austria and Switzerland. In a newly revealed deal, the Irish chain Smyths Toys has agreed to pay around €79m for the unit which is being sold in the liquidation of the bankrupt retailing group. The Irish Times reports that Smyths will use the transaction, which will leave it with a network of 200 stores, to kick start a major expansion into Europe. It’s being reported that the Toys R Us unit in Europe was producing earnings of around €22m, including royalty and brand expenses of €18m. The Smyths should have annual revenues of nearly €1bn once the deal goes through.
