Colruyt is closing six shops at toy store chain Dreamland and Dreambaby to cut up to 192 jobs. In addition, the retail group is selling most of Dreamland to the toy store chain ToyChamp.
Dreamland and Dreambaby are struggling with rising competition and the increase in online consumerism, which Colruyt stressed is weighing on sales and profitability.
Colruyt is now intervening to restructure the toy store chain and baby shop. The group plans to cut up to 192 of some 1,100 jobs. One of Dreamland's 48 shops and five of Dreambaby's 32 branches would close.
"We are fully aware of the human and social consequences of this intention to restructure, and we will therefore do everything possible to work constructively with all parties involved and provide the employees with the necessary guidance," CEO Jef Colruyt said.
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In addition, Colruyt is disposing of most of Dreamland. Toy store chain ToyChamp, which has more than 30 branches in Belgium and the Netherlands and a distribution centre in Genk, is acquiring 75% of the shares. Financial details of the deal, which should be completed by the end of this year, have not been released by the two parties.
Dreamland will continue to exist "as a brand and as a legal entity and employer", Colruyt said. Current management will remain in post.
Dreamland and Dreambaby shops closed
The 48 Dreamland shops will remain closed all day on Wednesday, the toy chain announced.
Following the announcement at a special works council Wednesday morning, Dreamland and Dreambaby shops are closed while staff meetings take place. Those at Dreamland will remain closed all day "so that we can provide our employees with the necessary initial support in the meantime," the chain informed in an e-mail to customers.
According to a Colruyt spokesperson, the five Dreambaby shops that were due to close – in Drogenbos, Beveren, Hoei, Tienen and Vilvoorde – will also remain closed. The 27 other branches of the baby store chain would however still be open on Wednesday.
