LONDON: Toys R Us stores in the Gulf remain open for business despite the US parent company filing for Chapter 11 bankruptcy protection.
A statement from the company said that the US operation and its Canadian unit would file for bankruptcy but that some 255 overseas stores were not part of the proceedings.
“The company intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth,” it said.
It added: “The company’s approximately 1,600 Toys“R”Us and Babies“R”Us stores around the world — the vast majority of which are profitable — are continuing to operate as usual.
Managers who spoke to Arab News at Toys R Us stores in Riyadh, Jeddah and Dubai said that they were trading as normal and were owned by separate entities.
Dubai-based Al Futtaim Group operates the largest number of Toys R Us stores in the region.
It has outlets in 19 locations across the Middle East and North Africa that include Bahrain, Egypt, Kuwait, Oman, Qatar and the UAE, according to its website.
The company was not immediately available for comment.
Several big high street names that have gone bust in Europe and the US in recent years have continued to trade in the Gulf states where they typically operate through standalone companies under licensing agreements with one of the big regional retail players.
Toys R Us is filing for bankruptcy as the global toys market begins to ramp up for its busiest time of the year.
CEO Dave Brandon said the company intended to work with creditors to restructure $5 billion of long-term debt on its balance sheet “which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.”
Gulf Toys R Us stores remain open as US company files for bankruptcy
Gulf Toys R Us stores remain open as US company files for bankruptcy
Closing Bell: Saudi stocks slip as Tadawul falls 1% amid broad market weakness
RIYADH: Saudi stocks fell sharply on Tuesday, with the Tadawul All Share Index closing down 108.14 points, or 1.03 percent, at 10,381.51.
The broader decline was reflected across major indices. The MSCI Tadawul 30 Index slipped 0.78 percent to 1,378.00, while Nomu, the parallel market index, fell 1 percent to 23,040.79.
Market breadth was strongly negative on the main board, with 237 stocks falling compared to just 24 gainers. Trading activity remained robust, with 164.7 million shares changing hands and a total traded value of SR3.19 billion ($850.6 million).
Among the gainers, SEDCO Capital REIT Fund led, rising 2.73 percent to SR6.77, followed by Chubb Arabia Cooperative Insurance Co., which gained 2.69 percent to SR20.20.
National Medical Care Co. added 1.72 percent to close at SR141.60, while Alyamamah Steel Industries Co. and Thimar Advertising, Public Relations and Marketing Co. advanced 1.57 percent and 1.13 percent, respectively.
Losses were led by Al Masar Al Shamil Education Co., which tumbled 8.36 percent to SR24.65. Raoom Trading Co.fell 6.75 percent to SR64.20, while Alkhaleej Training and Education Co. dropped 6.60 percent to SR18.12 and Naqi Water Co. declined 5.51 percent to SR54.00. Gulf General Cooperative Insurance Co. closed 5.44 percent lower at SR3.65.
On the announcement front, Chubb Arabia Cooperative Insurance Co. signed a multiyear insurance agreement with Saudi Electricity Co. to provide various coverages, expected to positively impact its financial results over the 2025–2026 period. The deal will run for three years and two months and is within the company’s normal course of business.
Meanwhile, Bupa Arabia for Cooperative Insurance Co. announced a one-year health insurance contract with Saudi National Bank, valued at SR330.2 million, covering the bank’s employees and their families from January 2026. Despite the sizable contract, Bupa Arabia shares fell 0.8 percent to close at SR137, weighed down by the broader market weakness.
In contrast, United Cooperative Assurance Co. revealed an extension of its engineering insurance agreement with Saudi Binladin Group for the Grand Mosque expansion in Makkah. The contract value exceeds 20 percent of the company’s gross written premiums based on its latest audited financials and is expected to support results through 2026. However, the stock came under selling pressure, ending the session down 4.51 percent at SR3.39.
