As no buyer has come forward, beleaguered retailer Toys R Us will enter administration tomorrow.
Around 3,000 jobs are expected to disappear as Toys R Us enters administration after failing to find a buyer for the business.
Toys R Us UK, which has a 3,200-strong workforce, is also expected to crash into administration following weeks of talks with potential buyers. The British arm of the global retailer was put up for sale in an attempt to shore up the US parent company, but a buyer has not been found.
Sky News reports the news, and the problems it poses for the Toys R Us pension fund:
The administration of Toys R Us UK will leave the Pension Protection Fund (PPF) facing a bill of about £37m as it absorbs the pensions liabilities of Britain’s biggest toy retailer, insiders said.
The pensions lifeboat was notified of the impending move on Friday, with Moorfields, a corporate recovery specialist which worked on the administration of the DVD rental chain Blockbuster five years ago, on standby to handle the administration.
Gordon Brothers is understood to have been engaged in talks about handling a liquidation of Toys R Us UK’s stock.
Stock may be sold off in a closing down sale, but based on recent stick liquidations it is unlikely to see much of a price slash initially. 3,200 employees are expected to lose their jobs as Toys R Us in the UK closes.