Big discounts at Toys R Us before stores shut

TOYS R US has slashed its prices as its administrators commence a nationwide closing down sale before stores start to shut in the coming weeks.

Moorfields Advisory said the first round of store closures would happen imminently, although it has not yet been decided how many of the 105 shops affected will go.

“The administrators will manage the store trading strategy while also evalu- ating the options for the company’s future and determining how to obtain the best possible outcome. It remains to be decided if some or all the stores will be closed,” Moorfields said.

All stores were continuing to trade yesterday, although stock had been discounted by as much as 25pc. Customers were told that gift cards and vouchers would be honoured, but the company is no longer accepting returns for refunds and shoppers can no longer make orders on the company’s website.

Some major brands are understood to have removed stock from Toys R Us stores in order to avoid heavy discounting. The retailer collapsed into administration on Wednesday, putting 3,000 jobs at risk, just weeks after agreeing a rescue deal.

It had been close to collapse at the end of last year but managed to secure a last-minute deal to put more money into its pension fund to avoid administration, and secured approval for a restructuring plan.

However, the company was then hit by a £15m tax bill in the UK, and needed a £50m injection to pay off lenders that provided financing to its US parent company. Management blamed increasing rent bills from its large warehouse-style stores as contributing to its collapse, as competition from online retailers and falling footfall put pressure on its profits.