Intertoys failed to meet its obligations due to the weight of the traditional retail business (company owned stores) and an overleveraged financial structure. The bankruptcy offered a very attractive opportunity to acquire the viable and strong E-commerce business and inventory at a significant discount. When Intertoys was approaching bankruptcy, the team of Globitas reached out to the franchisees. Strongly believing the continued potential, the team of Globitas, together with the  ~120 franchisees, made turnaround plan.


  • As part of the strategy, franchisees were willing to take over ~100 previously company owned stores that were profitable.
  • Franchisees also retained 100% control over the franchise organization. Globitas would only continue the E-commerce business.
  • Franchisees had the opportunity to buy stores incl. inventory (goodwill) and its stock at a discount. This acquisition sum was in return 100% financed by Globitas.
  • For the ~100 stores that weren’t part of the restart, a controlled ‘wind-down’ was organized, facilitating limited value loss for all stakeholders
  • This process resulted in limited capital need for the acquisition, since all stakeholders accepted limited value loss and risk, since the process is backed by the inventory assets. 


Although Globitas was the runner-up in the process, we’re very proud of this investment case.  This is a textbook example of a sustainable restart. It ultimately would have been the best outcome for the business; continuing more then 220 stores, maximizing employment, soft landing ‘wind down’ stores, limiting value loss for all stakeholders and the industry as a whole. By helping individual franchisers financing their new acquired stores, Globitas took her investment across the capital structure, a step further. We continue to believe that, with online sales of toys are growing 35-45% per year, the toy market provides a significant opportunity for a true Omni-channel proposition.


Value Proposition and Go-to-Market

  • The E-commerce annual sales alone were expected to be around €30m (Y1), and growing from thereon.
  • Lean and agile operation servicing the Dutch toys market from a strongly branded and marketed platform, with high end service levels using the stores as local DC’s
  • Direct-to-consumer platform, partly marketplace model servicing young parents with complementary products for a cohesive kids & family platform (e.g. day trips, family holidays, mobile, entertainment)


Market Highlights

  • More than €40 billion worth of toys are sold across Europe today
  • Netherlands’ toy market fastest growing market in Western Europe in 2017
  • 46.2% of all toys & games will be sold online by 2022
  • Online toy sales in the Netherlands grew ~43% in 2017, and ~34% in Q1 2018 (vs the same period the previous year)
  • Restart with ~220 privately owned stores


Exit strategy

  • Franchisees retained 100% control over the franchise organization
  • Globitas would remain holding the brand and the fast growing E-commerce business