Imaginary, a toy retailer based in Aragon, recently filed for voluntary bankruptcy protection in Zaragoza, according to information provided by company sources. The accumulated debt stood at 23.5 million euros at the end of the 2020-2021 financial year, and the group had fallen almost two years behind on payments. This step was taken in response to ongoing economic pressures, following a government moratorium designed to shield struggling companies from formal insolvency during the pandemic
.
The company stated that entering the bankruptcy process would preserve the business rather than liquidate it. Executives indicated that they aim to reactivate the network by expanding with eight new own stores across Spain before year
end. The plan centers on reviving operations and restoring momentum after a period of significant contraction. Industry observers note that success rates for similar processes are historically challenged, with a sizable majority of cases tending toward liquidation.
Imaginary entered the current pre-insolvency phase amid a broader restructuring that began several years ago. In 2013 the chain counted 426 stores across more than 20 countries and employed over 800 people. Since then the footprint has shrunk dramatically, with a large reduction in staff and storefronts, leaving a much smaller team and a handful of franchises in place. The company now operates with a much leaner presence and a smaller corporate and franchise network.
During the pre-insolvency period, the company faced pressures to lay off workers without severance pay and to manage overdue obligations. Without the moratorium, the enterprise would have had limited time to implement a recovery plan or pursue mandated proceedings. The delays affected workers and hindered access to certain social coverage provisions designed to protect employees during restructurings.
Some affected employees and their representatives sought court protection to ensure their claims could be addressed within the bankruptcy framework. So far this year, several social courts in Zaragoza and in Vitoria have entertained the case, with a number of workers awaiting compensation through social fund provisions.
Experts emphasize regret that the company waited until late to initiate the process and criticize the administration for narrowly choosing liquidation as the easiest route and avoiding the costs of a structured reorganization. A spokesperson for the Aragon Service Federation of the workers union expressed hope that bankruptcy could deliver a fresh opportunity for the brand to re-emerge as a recognized reference in the toy sector and to allow the business to continue without liquidation.
The chain once positioned itself as a global leader with a pioneering educational toy concept. Five years ago it faced a real risk of collapse, but a rescue proceeded when an international investor group led by Federico Carrillo Zurcher acquired a controlling stake. Carrillo Zurcher, a Costa Rican lawyer, has since become the driving force behind the current venture. By the start of this year, nearly all shares had been acquired by the group, creating a leaner, more centralized ownership structure.
In search of survival
The business has reduced its footprint to two stores within the country, relocating its Zaragoza location from the Aragonia shopping center to Calle Lef3n XIII, number 23. The move aims to optimize visibility and foot traffic in a challenging retail environment.
Company representatives remain confident about the path ahead, arguing that renewed physical store presence combined with active investor outreach is essential. The strategy includes expansion into additional markets, with plans to open nine sales points in Turkey and potential partnerships in Greece with distribution networks for children
fashion. A notable move involves reactivating operations in Turkey via a major franchise, with a first store already opened and a second planned before year-end.
The stated priority is to grow again in Zaragoza, where management anticipates opening one or two stores in the near term in addition to the newly relocated outlet. The longer-term goal is to end the year with a ten-store network across Turkey and Spain, establishing a stronger regional footprint and capitalizing on growth opportunities in Mediterranean markets.