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Melbourne Airport-based distributor Directed Electronics has acquired all shares in collapsed digital retail group Toys’R’Us ANZ (ASX: TOY) after the company went into administration in June, with shareholders resolving to execute a deed of company arrangement (DOCA).
The embattled company's five brands - Toys'R'Us, Babies'R'Us, Floaties, Riot Art and Craft and Hobby Warehouse - will join a suite of products handled by Directed Electronics that includes Disney and JBL, adding some 9,500-plus stock keeping units (SKUs) it distributes from its Melbourne, with additional support warehousing in Western Australia and New Zealand.
Directed Electronics, whose sole shareholder and director is its CEO Steve Siolis, currently supplies to more than 10,000 retail partner outlets from David Jones to Costco Wholesale to Myer (ASX: MYR).
The announcement marks yet another revival for Toys'R'Us in Australia, which was hit in 2018 when the toy retailer's US-based parent filed for Chapter 11 bankruptcy protection.
The 2018 event led to the closure of 44 stores across Australia, but a year later the brand returned when Hobby Warehouse bought the licensing rights for Toys’R’ Us and Babies’R’Us in Australia and New Zealand.
These assets were ultimately transferred to the listed Funtastic Group in 2020 when it acquired Hobby Warehouse, prompting the former to change its name to Toys’R’Us ANZ.
Following a UK asset sale last year and the resignation of its then-CEO Penny Cox in February 2025, just 18 months into the role, the company then revealed it had run at a $700,000 net loss for the six months to the end of January, amidst cash outflows from operations of $5.5 million.
During the FY25 first half, the group saw a slump in sales revenue to $3.1 million from continuing operations, from $5.9 million a year earlier.
The half-year loss, although marginal, came on top of a $9.6 million loss in FY24. It was a familiar story for Toys’R’Us ANZ which hasn’t posted a bottom-line profit since FY19 – back when it was known as Funtastic.
Failed attempts to secure a recapitalisation plan with major shareholders led to the nail in the coffin for Toys'R'Us as a listed entity, prompting the appointment of Luke Andrews and Duncan Clubb of BDO Business Restructuring as voluntary administrators.
"In light of these events, the board has determined that the company is, or is likely to become, insolvent and that the appointment of an administrator is in the best interests of the company," the board and administrators said at the time.
"During this period, the company will continue to operate on a ‘business as usual’ basis where possible, while the administrators explore options for restructuring or sale."
This canvassing has now led to a result for the brand with a DOCA signed on 31 July. As part of the arrangement, the company will be delisted from the ASX and its officers will be replaced.
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