Geoffrey the Giraffe is having some problems again, this time in Spain and Portugal.
As first reported last week by Lavanguardia, Toys “R” Us Iberia SAU, which operates Toys “R” Us and Babies “R” Us stores in the region, has begun voluntary insolvency proceedings in Spain, the equivalent to bankruptcy in the U.S.
The company was acquired by the Green Swan Fund in 2018, saving it from the fate of total liquidation that took place in the U.S., the UK, Australia, and some other territories. Toys “R” Us Iberia says that its 46 stores in Spain and 11 in Portugal will remain operational as it seeks new creditors to keep the business afloat amid reorganizing.
It’s a familiar tale not just for Toys “R” Us, but also for Green Swan, a private equity firm that also gobbled up European toy retailers Intertoys and Maxi Toys in early 2019, only to spin them off to Mirage Toy Group months later amid bankruptcy rumors. Maxi Toys was later flipped to French toy retailer King Jouet.
Earlier this month, Toys “R” Us Iberia opened a brand new store at CC Getafe 3 in Madrid, Spain.
While recent years have been rocky for Toys “R” Us, the brand is now owned by WHP Global which licenses the name and assets for use in approximately 900 stores internationally (excluding Canada) and e-commerce businesses operating in more than 25 countries. In the U.S., Toys “R” Us has a standalone store at the American Dream in New Jersey and will soon open branded toy departments in 400 Macy’s locations.
