Midrand: AfricUpdate – News Desk
The Competition Commission has approved the proposed transaction in which iconic toy retailer ToysRUs intends to acquire a competing group, ToyZone, with conditions. Despite the financial troubles that have hit the global ToysRUs business, which has shut down and re-opened several times over the past few years, the local operation is going strong. The South African ToysRUs brand is privately controlled by Michmir Investments Proprietary Limited, licensed from ToysRUs global.
ToysRUs is a specialist retailer of toys and games in South Africa and also incorporates the BabiesRUs brand which is focused on the retail of products targeted at babies, toddlers and new parents. ToysRUs operates through a national network of retail stores and an online store. ToysRUs global ran into heavy financial troubles in 2018 when it went bankrupt and liquidated its assets, closing hundreds of stores in the United States. The company emerged from bankruptcy as Tru Kids, which was later acquired by brand management company WHP Global in 2021. The ToysRUs brand was then relaunched under a partnership with another major retailer but was again forced to close after retail collapsed during the COVID-19 pandemic.
Outside of the global operations, however, the South African ToysRUs under Michmir continued to operate, unaffected by the global woes. The group has had successful operations in South Africa. Besides ToysRUs, Michmir controls Amic Africa Proprietary Limited and Amic Retail Services Proprietary Limited. It is now expanding through the proposed acquisition of ToyZone. ToyZone is jointly controlled by an individual and MSDS No.8 Proprietary Limited. ToyZone does not control any firms.
ToyZone is also a specialist retailer of toys and games in South Africa. It operates 13 stores and also has an online retail store. It offers mostly branded toys under popular international brands. The commission said it is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. To address public interest concerns, the merger parties shall not retrench any employees as a result of the merger for a period of two years following the merger implementation date.
