Two collapses risk 5,500 jobs

TOYS R Us and Maplin went into administration yesterday threatening 5,500 jobs in a blow to the UK high street.

Administrators were appointed to conduct an “orderly wind-down” of Toys, one of the country’s biggest toy retailers, which trades from 84 outlets and 21 concessions and employs 3,200 people.

The company, whose operations outside the UK are not affected, had won a temporary reprieve before Christmas after agreeing to pay nearly £10million into its pension plan and announcing plans to close at least 26 stores.

But festive trading was worse than expected and it failed to find a buyer before the deadline for a £15million tax bill.

It admitted its warehouse-style stores had become “too big and expensive to run”.

All of the stores will continue trading until further notice and gift cards and vouchers will be honoured during that time, although customers were warned to redeem them as quickly as possible.

Simon Thomas, joint administrator at Moorfields Advisory, said: “We will make every effort to secure a buyer for all or part of the business.

“The newer, smaller, more interactive stores have been outperforming the older warehouse-style stores that were opened in the 1980s and 1990s.

“While this process is likely to affect many Toys staff, whether some or all of the stores will close remains to be decided.”

Administrators PwC will also continue to trade electronics retailer Maplin as normal while it tries to find a new owner.

There are no immediate plans to close any of its 217 stores or make any redundancies among its 2,335 employees.

Maplin chief executive Graham Harris said the company had been hit by a falling pound, weak consumer spending and the withdrawal of credit insurance for suppliers to cover customer orders.

He added: “We believe passionately that Maplin has a place on the high street, and that our trust, credibility and expertise meets a customer need that is not supported elsewhere.”

Hundreds more jobs are at risk as private equity-owned Italian restaurant chain Prezzo looks at closing a third of its 300 outlets.