Toys R Us secures A$15m in funding for UK launch

Published on: 1st August 2022

Dr Louis Mittoni, CEO and managing director of Toys R Us ANZ, says the company is ‘on track to launch in the UK market in late August/early September’.

Toys R Us ANZ has secured a senior term loan facility of up to A$15m to support and advance the company’s planned entry into the UK market and eCommerce launch. Financial close was expected to occur on 29th July 2022.

The loan is repayable three years following the date of the first advance. 18m warrants to acquire fully-paid ordinary shares in the company will also be issued to the lender with an exercise price of 15 cents per share and a three-year expiry term. Funding is on terms management consider to be favourable to the company, subject to market standard events and customary conditions precedent.

Funds obtained from the facility will support working capital and capital expenditure requirements for the company’s planned entry into the UK market and eCommerce launch, including the acquisition of inventory.

Dr Louis Mittoni, CEO and managing director of Toys R Us ANZ, said: “We are encouraged by the support we have received in the finalising the term loan facility and thank our existing and incoming investors for the confidence they have provided. This important step brings us much closer to our near-term goal of significant expansion in Australia and rapid entry into the attractive UK market.”

Louis continued: “In the finalisation of the facility, we have remained focused on expediting our plans to move and consolidate our offices and warehouses. Transition from existing warehouses into the company’s new 19,650m2 headquarters, warehouse and eCommerce distribution facility in Clayton, Victoria commenced in early July and is scheduled for completion in September. The process is expected to cause near-term disruption to sales revenue; however, we expect this to be transitory and view the exercise as serving the company’s long-term interests. With the new facility four times the size of the current interim facility, we are building strong foundations for future growth and expansion.”

“Against a backdrop of unpredictable declines in Australian consumer confidence with attendant impacts on local toy industry sales, we continue to view the company’s UK entry to be timed to optimise our opportunity in Europe’s largest toy market. Whilst we have experienced disruptions to equipment availability in the UK that have delayed operations, we remain on track to launch in the UK market in late August/early September.”

“Three months ahead of the peak selling season is an exciting time to launch into the UK, which is the largest toy market in Europe and the fourth largest globally, with a total addressable market valued at ~£3.3b. We look forward to keeping investors updated regarding our progress.”

With a UK head office team already in place, a UK website has been set up and will be updated accordingly.


Friday Blog

On with the show…it’s the Friday Blog!

Panini launches FIFA World Cup Qatar 2022 collection

Schleich returns to Royal Dublin Horse Show with Teddy the Shetland Pony

John Adams bolsters team with new sales agent

Wizards of the Coast reveals new lineup

The Toy Association confirms 2023 New York Toy Fair dates

See the latest new roles added to Toy World’s recruitment round-up

Get involved in the October issue of Toy World

Tiny Pop to air Spin Master’s Mighty Express

Walmart partners with Paramount+ for members