Toys R Us stores in the UK are expected to start closing this week, as the administrators wind down the business.
Last September, the immediate financial woes of Toys R Us UK were made public, and now store closures are imminent. Administrators were called in at the end of February, discounting stock at all of the existing stores in preparation for closures. Around one quarter of stores have discounts of 60%, with all other stores offering discounts between 10% and 30%. Today is the last day to use gift cards at Toys R Us stores.
Moorfields, the appointed administrators, had been hoping to find a buyer for at least part of the business, but reports in newspaper such as the Independent are suggesting that such a deal is now unlikely. Physical retail chains are now looking like a less viable prospect for investors.
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 closed.