WHP Global plans to manage the global Tru Kids business and invest in its expansion.
Management company WHP Global said it had acquired a majority stake in U.S. children's toy retailer Tru Kids, which owns the Toys R Us, Babies R Us, and Geoffrey the Giraffe brands.
"We are in the brand business, and Toys R Us is the single most trusted, trusted, and beloved toy brand in the world," commented Yehuda Schmidman, chairman and CEO of WHP. He notes that the purchase is significant to the company because it closes a gap in the children's segment, CNBC wrote.
Toys R Us initiated Chapter 11 bankruptcy, which allows for business reorganization, back in 2017. But it was never able to emerge from bankruptcy on its own. As a result, the retailer has come under the control of investment funds. Schmidman has been vice-chairman of parent company Tru Kids since 2019.
The company has tried several strategies to accelerate growth. Currently, all of the company's online sales are conducted through Amazon. According to Schmidman, the restructuring has greatly benefited the business, and Toys R Us can now overcome the effects of the 2020 crisis.
WHP Global plans to manage the global Tru Kids business and invest in its expansion. Toys R Us and Babies R Us products are now available in more than 900 stores in 25 countries -- Europe, Asia, Africa, Australia, and the Middle East.
In North America, the company plans to open new stores before the holiday season. Both flagship stores and pop-up outlets, both in airports and at department stores, are being considered.
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16 MARCH 2021, USA