The administrators managing the closure of Toys R Us have said that customers should expect further discounts and confirmed that all stores will close within six weeks.
As the UK public faces the prospect of Toys R Us no longer being part of the retail landscape, customers will have the opportunity to pick up some cheap toys during its final weeks trading. The administrator has advised the BBC that there will be further discounts before all of the retailer’s shops close their doors permanently.
With no buyer found for the Toys R Us UK business after the company fell into administration, it has been confirmed that all of the retailer’s stores will close within the next six weeks. After months of struggling to stay afloat, the final obstacle that the company could not overcome was a £15 million VAT bill. Moorfields Advisory was appointed as the administrator to manage the process of winding down the business.
Joint administrator Simon Thomas told the BBC that despite discussions with 120 different potential buyers, no agreement could be reached. The majority were focused on buying the company’s stock, with six looking at buying the entire business. He said one of the problems with selling Toys R Us in the UK as a whole would be the rights to the brand name, which is owned by the US parent company. The set up of the business, with multiple subsidiaries offering different services, also put off buyers when faced with the logistical challenges that the process would entail.
At present, Toys R Us stores are selling stock with discounts of up to 30% off the regular price, specifically with a 15% discount on LEGO sets. Thomas’ comments indicate that prices will be discounted further in order to clear through all inventory before the retail locations close within the next six weeks.
The future of Toys R Us in the USA is also in doubt, with the company likely to go into liquidation and see a large number of stores close.