Toys R Us UK to enter administration – 3,200 jobs at risk
Toys R Us will enter administration early next week, with 3,200 jobs at risk, as no buyer has come forward.
Weak Christmas trading for Toys R Us meant that the original rescue plan was thrown into doubt, with the UK arm of the retailer needing to pay a £15 million VAT bill on Tuesday. Short of a last minute buyer entering the picture, an administrator will be appointed, putting 3,200 jobs in jeopardy.
Sky News reports that Toys R Us directors met with the Pension Protection Fund to advise that administration proceedings were being undertaken. Although a rescue deal coming forward before Tuesday is possible, it is considered very unlikely.
Moorfields, a corporate recovery specialist which worked on the administration of the DVD rental chain Blockbuster five years ago, is said to have been put on standby to oversee Toys R Us’s potential insolvency.
The end of the road for Toys R Us has arrived just months after a rescue package was agreed, that would have seen hundreds of store closures but kept the retailer alive.
Problems for the US Toys R Us business continue, with further store closures planned in North America.
Author Profile
- Graham was the Brick Fanatics Editor up until November 2020. He has plenty of experience working on LEGO related projects, including LEGO Star Wars: The Force of Creativity. He has contributed to various websites and publications on topics including niche hobbies, the toy industry and education.
Latest entries
- 25 Years of LEGO Star Wars02/05/2024How Lucasfilm approved LEGO Star Wars sets in the age before video calls
- 25 Years of LEGO Star Wars01/05/2024How the LEGO Group cooked up the original LEGO Star Wars UCS X-wing
- Features07/01/2021LEGO exclusive: AFOLs taught us to take adults seriously
- Features06/01/2021‘The 1989 Batmobile isn’t really a car…’