Goldilox
How do I edit this?
The Stafford store was only ever a temporary store, however, that article suggests they still have to get the go ahead from their American parent company before store closures, but I thought that part of the business was already defunct and the uk arm was trading in its own right ? , I can see the whole lot vanishing within the next few years tbh
If it works the same way as a multinational I used to work for, then the parent company will have been separated off from the American retail arm & will work as a licensing operation, charging the retail companies across the world a percentage of their turnover to use the ToysRUs branding. By setting up multiple limited companies you section off the risks and it means if, say for the sake of argument your US retailers suffered horrific losses, then when your creditors force insolvency they can't get their hands on your UK stores or stop you using the brand elsewhere.
It also means (& i really have no idea if this applies to ToysRUs) that, should you be inclined to, you can base your parent company somewhere where the tax regime is particularly favourable & set your licensing fees at a level that closely matches your bottom line, thus avoiding the taxes that would be due on your profits if you declared them in your major markets...
