Amsterdam, 12 February 2019. Intertoys, the Netherlands’ market leading toy retailer, has applied for suspension of payments for its Dutch activities. The move reflects pressure from persistent severe market conditions.
On the basis of extensive analysis, Intertoys has concluded that wide-ranging restructuring of the current organization is essential.
In order to conduct that process in an organised manner as possible, Intertoys today applied for suspension of payments at the court in Amsterdam. The administrators, Jasper Berkenbosch, of Jones Day, and Joris Lensink, of De Vos & Partners, will investigate all possibilities to restructure Intertoys, in close consultation with management. The outcome of this process is not yet clear.
The suspension of payments does not apply to the activities in Belgium. The measure has no effect on Intertoys stores in the short term. The shops will remain open and standard return arrangements will remain in force throughout the process.
The suspension of payments will commence immediately. In terms of next steps, in consultation with the administrators, the advice of the Works Council will be requested where required.
The far-reaching step reflects continuing pressure on the entire retail sector. Increasing online sales have reduced toy store sales by 50% in ten years. Also specialist stores like Intertoys face increasing competition from discounters outside the traditional toy market.
Roland Armbruster, CEO Intertoys, "In the current trading environment, even a market leader like Intertoys faces constant pressure. With a 50% decline in toy store sales in 10 years, we have had no choice but to take difficult decisions. We regret the uncertainty this creates for everyone at Intertoys, including our employees, franchisees and suppliers, but the market developments in recent years left us no alternative. We are in discussion with several parties about further cooperation, and will do our utmost to conduct this process in the best way possible for all parties involved."
The move announced today follows a wide range of investments and initiatives over the past 14 months to improve Intertoys’ performance. Among those were the appointment of new and experienced management, the launch of a new IT platform and web store and improved supplier conditions, better inventory management and a clean-up of old stock, and optimisation of the supply chain.
Please contact Intertoys’s spokesman David Brilleslijper on +31 (0)20-255 9355 or + 31 (0)6 -109 425 14.
Intertoys has more than 3,200 employees (1,600 FTE) across approximately 300 stores in the Netherlands and Belgium, 2 distribution centres and a head office in Amsterdam. Intertoys also has more than 100 franchisees in the Netherlands.