Tokyo, Oct. 1 (Jiji Press)–Japan’s Pan Pacific International Holdings Corp., the parent of discount store operator Don Quijote Co., said Thursday that it has signed a business transfer agreement with Toys “R” Us-Japan Ltd., a major toy retailer. Toys “R” Us-Japan, based in Kawasaki, Kanagawa Prefecture, south of Tokyo, filed for court-led rehabilitation under the civil rehabilitation law with Tokyo District Court the same day. PPIH plans to take over operations at all stores operated by Toys “R” Us-Japan by the end of this month, following court approval. According to Teikoku Databank Ltd., Toys “R” Us-Japan has liabilities totaling about 13.2 billion yen. The Toys “R” Us brand and major liabilities will be transferred to PPIH, with the company planning to continue operations with a goal of regaining profitability mainly by strengthening sales. Toys “R” Us-Japan operates more than 150 stores nationwide. In recent years, the company has remained in the red amid the country’s declining birthrate. PPIH, which is also involved in the toy business, believes that the combination of the two companies’ market shares will give it a dominant position in the Japanese toy market. PPIH primarily targets younger customers and visitors to Japan, while Toys “R” Us-Japan has a customer base focused on families. At a press conference Thursday, PPIH President Hideki Moriya said, “The addition of Toys “R” Us-Japan’s wide range of customer touchpoints will contribute to our group’s sustainable growth.” END [Copyright The Jiji Press, Ltd.]
