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.
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