Smyths Toys to take over Toys R Us stores in Germany

BERLIN (AP) - Ireland-based Smyths Toys has reached a deal to take over more than 90 Toys R Us stores in Germany, Austria and Switzerland.

In March, Toys R Us said it would be liquidating its U.S. business. Its German branch said in a statement Saturday that Smyths Toys has signed an agreement to take over its activities in the three countries, with 93 stores and four online shops.

Smyths Toys, which according to the statement operates 110 stores and online shops in Ireland and Britain, said it is confident of establishing and expanding its brand in continental Europe.

The deal requires approval by a U.S. court and other authorities. It foresees Smyths Toys taking over Toys R Us' regional employees and local headquarters in Cologne.

No financial details were given.