Toys R Us Australia

Toys R Us Australia is the Australian franchise and retail operation associated with the international Toys "R" Us toy-store brand. It entered the Australian market in March 1993 and developed a large-format store network selling toys, games, children's products and baby merchandise. The business competed not only with specialist toy stores but also with broad-based retailers such as Kmart Australia, which could use their general-merchandise scale, established locations and price competition to challenge toy specialists. The Australian launch prompted a direct response from Coles-Myer, which opened a competing toy-focused chain called World 4 Kids shortly before Toys R Us began trading locally. World 4 Kids ultimately closed in 2002 after sustained losses, while Toys R Us became one of Australia's most recognizable specialist toy retailers. The chain was often described as a category killer: a large-format specialist capable of concentrating product range, inventory and store presence in a way that put pressure on smaller independent toy shops. Despite its brand visibility, the Australian operation faced structural challenges. The Australian toy market generated less consumer spending than some other markets in which Toys R Us had expanded, and the local business reportedly struggled to maintain consistent profitability. Its fate became closely linked to the financial problems of the United States parent company. In May 2018, the Australian operation entered voluntary administration and appointed McGrathNicol as administrators. After a buyer could not be secured, the company announced the closure of its Australian store network. The 44-store shutdown was completed on 5 August 2018. The brand returned to Australia in digital form on 5 June 2019. Tru Kids, which held rights associated with the Toys R Us brand after the United States retail bankruptcy, partnered with Hobby Warehouse to relaunch an Australian online store. Hobby Warehouse and the Australian and New Zealand Toys R Us business were subsequently acquired by Funtastic in 2021. Funtastic later changed its name to Toys R Us ANZ, and the group announced plans for a broader return of the Toys R Us retail presence in Australia. The Australian business expanded its portfolio during this period. In 2024, Toys R Us acquired Riot Art & Craft, an Australian arts-and-crafts retailer that had previously entered creditors' voluntary liquidation in 2020 and closed its physical stores. The acquisition connected the toy business with an adjacent creative-products category while also bringing the history of Riot's insolvency into the wider corporate story. On 5 June 2025, Toys R Us ANZ announced that it had entered voluntary administration after years of losses and stated to the Australian Securities Exchange that it was, or was likely to become, insolvent. BDO was appointed as administrator. On 31 July 2025, the business was transferred to Directed Electronics Australia under a deed of company arrangement, and the company was removed from the ASX. Toys R Us Australia therefore represents a continuing consumer brand whose Australian presence has moved from a multinational store network to a digital and reorganized retail operation under new ownership.

Toys R Us Australia began trading in March 1993 as the Australian franchise of the American Toys "R" Us chain. Its arrival created immediate concern among established general retailers. Coles-Myer launched World 4 Kids shortly before the first Australian Toys R Us stores opened, seeking to defend toy sales at its department stores, particularly Kmart. World 4 Kids established a number of locations but ultimately could not sustain the losses associated with the competition and closed in 2002. Toys R Us became a major specialist toy retailer in Australia, benefiting from the category-killer model of large stores, broad merchandise ranges and concentrated inventory. The chain competed with independent toy shops and with retailers that sold toys as part of a larger general-merchandise offer. Some former World 4 Kids sites were later converted to Kmart stores, while others became Toys R Us locations. The Australian business nevertheless faced a less favorable market environment than some international operations, including lower overall toy spending and strong competition from mass merchants. The operation reportedly had difficulty maintaining profitability over the long term. The collapse of the United States Toys R Us parent destabilized the Australian franchise. On 22 May 2018, Toys R Us Australia entered voluntary administration and appointed McGrathNicol. A buyer was not found, and the company announced on 20 June that its Australian stores would close. The closure of all 44 stores was completed on 5 August 2018, ending the chain's first store-based phase in the country. The brand returned on 5 June 2019 through an online store created by Tru Kids in partnership with Hobby Warehouse. This relaunch preserved an Australian Toys R Us presence without immediately recreating the former national store network. In 2021, Funtastic acquired Hobby Warehouse and the Toys R Us Australia and New Zealand business. Funtastic subsequently adopted the Toys R Us ANZ name and later promoted plans for the brand's return to Australian retail. In 2024, Toys R Us acquired Riot Art & Craft. Riot had entered creditors' voluntary liquidation in late 2020 during the COVID-19 period, abruptly closed its 56 stores and dismissed about 300 employees by text message. The liquidation and the reported sale of its website to a related company generated questions about the conduct of directors or insolvency practitioners, though the supplied reference does not document a definitive misconduct ruling. The reorganized Toys R Us ANZ business entered another period of financial distress in 2025. On 5 June, it placed itself into voluntary administration, appointed BDO and disclosed to the ASX that it was, or was likely to become, insolvent. On 31 July, Directed Electronics Australia took over the business through a deed of company arrangement. The company was removed from the ASX, leaving the Toys R Us Australia brand under private ownership and marking another major transition in its Australian corporate history.

1. 2025Administration and change of control

   Toys R Us ANZ entered voluntary administration in June and was acquired by Directed Electronics Australia under a deed of company arrangement in July.

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2. 2024Riot Art & Craft acquisition

   Toys R Us expanded into arts and crafts through the acquisition of Riot Art & Craft.

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3. 2021Funtastic acquires the Australian and New Zealand business

   Funtastic acquired Hobby Warehouse and the Toys R Us ANZ operations and later adopted the Toys R Us ANZ corporate name.

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4. 2019Online relaunch

   Tru Kids and Hobby Warehouse relaunched Toys R Us Australia as an online retailer.

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5. 2018Australian stores shut after administration

   The Australian business entered voluntary administration in May and closed all 44 stores by 5 August.

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6. 2002World 4 Kids closes

   Coles-Myer's competing toy-store chain closed after sustained losses, removing a major direct challenger created in response to Toys R Us's Australian entry.

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7. 1993Toys R Us enters Australia

   The Australian franchise began operating in March, introducing the Toys R Us large-format specialist toy-retail model to the country.

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A specialist, family-oriented toy and children's-products retailer offering a broad assortment through large-format stores and online channels. In Australia, the brand has also been positioned as a category-killing specialist capable of competing through range, inventory depth and dedicated toy retailing.

• ToysToy retail1993

  The core assortment includes children's toys across common play categories, supported by the broad range and dedicated inventory associated with the Toys R Us specialist-retail format. The Australian business has sold toys through both its former physical-store network and its later online operation.

• Baby productsBaby retail

  Baby products form an adjacent category within the Australian Toys R Us ecosystem and are also associated with the Babies R Us offering. The category extends the brand beyond toys into products for infants, parents and young families.

• Arts and crafts productsArts and crafts retail2024

  Following the 2024 acquisition of Riot Art & Craft, the business gained exposure to arts, crafts and creative activity products. This category complements children's play merchandise and broadens the potential use occasions served by the retail group.

• 2025Enter voluntary administrationStrategy

  After years of losses, Toys R Us ANZ disclosed that it was, or was likely to become, insolvent.

  What changed. The company appointed BDO as administrator on 5 June 2025.

  Aftermath. The business was subsequently transferred to Directed Electronics Australia under a deed of company arrangement.

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• 2025Transfer to Directed Electronics AustraliaM&A

  The Toys R Us ANZ group was undergoing voluntary administration and required a restructuring or sale solution.

  What changed. Directed Electronics Australia took over the business through a deed of company arrangement on 31 July 2025.

  Aftermath. The company was removed from the ASX and the Australian brand continued under new private ownership.

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• 2024Acquire Riot Art & CraftM&A

  Riot Art & Craft had previously entered liquidation and operated in an adjacent creative-products category.

  What changed. Toys R Us acquired Riot Art & Craft.

  Aftermath. The group expanded beyond toys and baby products into arts and crafts retail.

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• 2021Acquire Hobby Warehouse and Toys R Us ANZM&A

  Funtastic acquired the online retail operation and the Australian and New Zealand Toys R Us business.

  What changed. Funtastic completed the acquisition and later changed its name to Toys R Us ANZ.

  Aftermath. The transaction placed the Australian brand within a dedicated regional Toys R Us corporate structure.

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• 2019Relaunch as an online retailerProduct launch

  After the 2018 store closures, the brand sought to maintain an Australian presence without immediately rebuilding its physical network.

  What changed. Tru Kids partnered with Hobby Warehouse to relaunch the Australian Toys R Us website.

  Aftermath. Toys R Us returned to the Australian market through an online model and later became part of the Toys R Us ANZ group.

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• 2018Close the Australian store networkStrategy

  The Australian operation entered voluntary administration following the United States parent's bankruptcy, and no buyer was secured for the business.

  What changed. The company proceeded with the closure of all 44 Australian stores.

  Aftermath. The store-based Australian operation ended on 5 August 2018, although the brand later returned online.

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• 2020Riot Art & Craft liquidation and worker-dismissal controversyControversy

  Riot Art & Craft entered creditors' voluntary liquidation during the COVID-19 period, closed its 56 physical stores and dismissed approximately 300 workers by text message. The reported sale of its website to a related company also prompted concerns about possible director or practitioner misconduct. The episode predates Toys R Us's 2024 acquisition of Riot, and the supplied reference does not establish a final finding of wrongdoing.

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• 2025Toys R Us ANZ enters voluntary administration

  After years of losses, Toys R Us ANZ announced on 5 June 2025 that it had entered voluntary administration and appointed BDO. The company told the ASX that it was, or was likely to become, insolvent.

  BankruptcyLeadership change
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• 2025Directed Electronics Australia takes over Toys R Us ANZ

  Directed Electronics Australia acquired the business under a deed of company arrangement on 31 July 2025. Toys R Us ANZ was subsequently removed from the ASX.

  M&ABankruptcy
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• 2024Toys R Us acquires Riot Art & Craft

  The Toys R Us business acquired Riot Art & Craft, expanding its activities into an adjacent arts-and-crafts retail category.

  M&A
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• 2023Toys R Us announces Australian retail return

  Toys R Us ANZ announced plans for the brand to return to Australian retail after its post-2018 online relaunch.

  Product launch
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• 2021Hobby Warehouse and Toys R Us Australia acquired by Funtastic

  Funtastic acquired Hobby Warehouse and the Australian and New Zealand Toys R Us business, later changing its name to Toys R Us ANZ.

  M&A
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• 2019Toys R Us returns to Australia as an online retailer

  Tru Kids partnered with Hobby Warehouse to relaunch the Toys R Us brand in Australia through an online retail operation.

  Product launch
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• 2018Toys R Us Australia enters voluntary administration

  The Australian operation entered voluntary administration on 22 May 2018 after the bankruptcy of its United States parent. McGrathNicol was appointed as administrator.

  Bankruptcy
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• 2018All Australian Toys R Us stores to close

  After a buyer was not secured, the business announced the closure of its Australian store network. All 44 stores had closed by 5 August 2018.

  Bankruptcy
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1. Toys "R" Us Australia