TOYS WERE US
3200 jobs are at risk as retail giants go into administration Customers are warned to pick up paid-for goods immediately
TOYS R Us have collapsed into administration, putting 3200 jobs at risk after last-ditch rescue attempts failed.
Administrators Moorfields Advisory have started an “orderly wind-down” of the company’s stores after the firm failed to find a last-minute buyer.
Toys R Us are one of the nation’s biggest toy retailers, with more than 100 stores in the UK and 1500 in 33 countries across the globe.
The firm were grappling with a £15million tax bill as well as money owed to lenders.
They also struggled with cash flow pressures after sales were squeezed by worse-than-expected trading over the crucial Christmas period.
In addition, falling consumer spending, soaring inflation and competition from online rivals have dented performance in recent years.
Simon Thomas, Moorfields partner and joint administrator, said: “All stores remain open until further notice and stock will be subject to clearance and special promotions. We’re encouraging customers to redeem their gift cards and vouchers as soon as possible.
“We will make every effort to secure a buyer for all or part of the business.”
Toys R US announced a Company Voluntary Arrangement at the end of last year in an attempt to shore up their financial position by allowing them to shut loss-making stores and secure deep discounts on rental costs.
The restructuring plan won the approval of 98 per cent of creditors in December and had the backing of the Pension Protection Fund (PPF), which is set to be taken over by the PPF.
Efforts to find a buyer fell flat and the firm were forced to call in administrators.
Thomas said: “While this process is likely to affect many Toys R Us staff, whether some or all of the stores will close remains to be decided. We have informed employees about the process and will continue to keep them updated on developments.
“We are grateful for the commitment and hard work of employees as the business continue to trade.”
All stores will continue trading until further notice.
Gift cards and vouchers will be honoured while stores continue to trade but customers are being encouraged to redeem vouchers as soon as possible.
No more gift cards will be sold from Wednesday.