The Dutch toy chain, Intertoys has become the latest to find itself in financial trouble, having applied for court protection from its creditors.
The retail group has deemed the step necessary owing to the “persistent heavy market conditions,” being felt by many on the high street at the moment.
“We have come to the conclusion following in-depth analyses that the current organisation needs to undergo hefty restructuring,” the company said in a statement.
The details of these reforms will be determined in the near future by two administrators and management, However the 350 Dutch shops, of which around 100 are run by franchisees, will remain open while this takes place.
The application currently only applies to activities in the Netherlands, not to those in Belgium.
Intertoys was founded in 1976 and is recognised as the market leader in the sector, with around 300 stores in the Netherlands and Belgium and a workforce of more than 3,200.
The recent announcement leaves that workforce facing uncertainty. Intertoys CEO Armbruster regrets the situation it has put them in, stating that “the market developments in recent years do not give us an alternative.”
Intertoy toy sales have halved over the past ten years, according to the CEO, and it is currently facing increased competition from discounters.
It is in a number of talks with parties about cooperation. Intertoys was owned by Blokker Holding until the end of 2017 when it was taken over by the British investment company Alteri.