5,700 jobs in danger as stores chains hit trouble
MORE THAN 5,700 jobs were in jeopardy last night after two major retailers went into administration and a restaurant chain faced restructing with up to 100 sites expected to close.
Retailer Toys R Us has collapsed into administration, putting 3,200 jobs at risk, after last-ditch rescue attempts failed.
Administrator Moorfields Advisory has started an “orderly wind-down” of the company’s stores after the embattled firm failed to find a last-minute buyer to save the business.
Toys R Us is one of the nation’s biggest toy retailers, with more than 100 stores in the UK and 1,500 in 33 countries across the globe. The firm was grappling with a £15m tax bill as well as money owed to lenders.
Toys R Us has struggled with cash flow pressures after sales were squeezed by worse-thanexpected trading over the crucial Christmas period. Simon Thomas, Moorfields partner and joint administrator, said: “We will be conducting an orderly winddown of the store portfolio over the coming weeks.
“All stores remain open until further notice.”
Meanwhile, electronics company Maplin became the second retailer on the same day to collapse into administration, putting another 2,500 jobs at risk.
The group, owned by private equity firm Rutland Partners, called in PwC after attempts to rescue the chain failed.
Maplin has 217 stores in the UK, and PwC is still attempting to find a buyer for the group.
Graham Harris, the company’s chief executive, said: “I can confirm this morning that it has not been possible to secure a solvent sale of the business and as a result we now have no alternative but to enter into an administration process.
The news comes as hundreds of jobs are expected to be lost at Prezzo as the restaurant chain edges closer to a restructuring that will see up to 100 sites close.
The company, owned by private equity firm TPG Capital, is set to launch a Company Voluntary Arrangement (CVA), which will allow the Italian-themed chain to exit unprofitable branches and secure rent reductions on the remaining estate. A total of 100 of Prezzo’s 300 outlets have been earmarked for closure, as well as its Tex-Mex chain Chimichanga.