More Bicycle Industry Pain…

The shake-out continues in the bicycle industry with on-line toy and bicycle retailer Toys’R’Us yesterday entering voluntary administration. Toys’R’Us shares (ASX:TOY) were suspended from trading following the announcement and BDO Business Restructuring has been appointed to take control of the company’s operations. A creditors meeting will be held within 8 days.

The Toys’R’Us website has been offering DTC sales of Progear children’s bicycles, balance bikes and tricycles. The website appears to be in operation as of this morning (June 6).

The company has endured some tumultuous times with some substantial losses, some AU$79,000,000 over the last four years. The Toys’R’Us share price has fallen from highs of AU$0.19 in 2021 to yesterday’s AU$.03 at the time of suspension.

Toys’R’Us operates from a modern 3000m² warehouse in Clayton, Vic.

In an ASX release, the company stated it would continue to operate on a “business as usual” basis where possible while Administrators explored options for restructuring or sale.