The ToyChamp retail chain, which operates across Belgium and The Netherlands, is set to acquire 75% of Dreamland’s shares.

With Belgian toy chain ToyChamp acquiring 75% of Dreamland’s shares, the restructuring has been designed to give Dreamland and Dreambaby ‘a new impetus to expand in a sustainable way’. The Group said it had decided to restructure after a critical evaluation, and that partnering with the family-owned toy chain, which operates more than 30 stores in Belgium and the Netherlands and has a distribution centre in Genk, will strengthen Dreamland as a business. Together, Dreamland and ToyChamp would become Belgium’s largest toy retailer.

Dreamland, which operates 48 stores, and Dreambaby, which has 30 stores, make up one single business, which has been struggling financially, with falling volumes and increasing competition from online players such as bol.com and Amazon, as well as more traditional retail chains such as ToyChamp or Fox & Cie.

ToyChamp will gain control of the chain, which will remain as a brand and legal entity, and current management will remain on board.

The restructure sees six Dreamland and Dreambaby stores earmarked for closure, which means 92 jobs are at stake. Specifically, the retailer plans to close one Dreamland store and five Dreambaby stores.

The retailer has attempted to improve its fortunes with a revamped store concept and a new online strategy with higher delivery costs and a focus on click & collect, but at the end of January, managing director Dieter Struye left the business following disappointing results.

ToyChamp is owned by the Nolmans family, with a chain of toy shops that focuses on large experience stores of 1,400 to 2,000 m². Dedicated shop-in-shops feature brands such as Lego, Sylvanian Families, Baby born, Squishmallows and Schleich, and the company’s recent success has stood out in the local toy market, where widely reported difficulties have been experienced by sector peers such as Bart Smit, Intertoys and Maxi Toys.