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VTech Holdings (00303) sees sales to Toys "R" Us to decline
VTech Holdings (00303) said Toys"R" Us, Inc., 
who is one of the Group's five largest customers for the financial year ended 31 March 
2017, has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code 
together with its certain U.S. subsidiaries and under Canada Companies' Creditors
Arrangement Act for its Canadian subsidiary.
Toys "R" Us subsidiaries in Asia, Australia and Europe are not part of the bankruptcy
protection proceedings. Toys "R" Us has indicated that they intend to continue to operate
as usual during the bankruptcy protection proceedings.
The VTech Group's sales to-date to Toys "R" Us have been covered by credit insurance.
VTech will ensure that the payment of future supply of the products to Toys "R" Us will be
secured. At the moment, sales to Toys "R" Us is expected to decline and VTech is assessing
its potential impact to the future business. However, VTech does not expect any material 
adverse effect on the Group's financial position. 

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