Economy

Toys R Us launches nationwide closing down sales in wake of collapse

Toys R Us launches nationwide closing down sales in wake of collapse

United Kingdom children and babies' toy and clothing retailer Toys "R" Us Limited has fallen into administration after failing to attract a buyer for the business, putting around 3,000 jobs at risk.

Toys "R" Us is one of the UK's largest toy retailers with 3,000 staff and 105 stores across the country.

The administration, which follows an unsuccessful attempt to find a buyer, will "conduct an orderly wind down" of the ailing retailer's United Kingdom business over the coming weeks.

"Maplin have chose to continue trading for the moment, however if the administrator decides to suspend gift vouchers and refunds, you could be in for a lengthy battle to get your money back if you paid via cash".

Simon Thomas and Arron Kendall have also been appointed as joint administrators of Toys R Us Holdings Limited.

Electronic retailer Maplin has several stores across Ireland - in Dublin, Cork, Limerick and Galway - while Toys R Us has branches in the North.

Its British operations narrowly avoided entering administration in December after a key creditor embraced its plan to begin shutting stores and plug its pensions deficit.

PwC is still trying to find a buyer for the electronics company and Graham Harris, the company's CEO, confirmed that a sale had not been successful. "We are grateful for the commitment and hard
work of employees as
the business continues
to trade".

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The corporate recovery specialist said that all stores would remain open until further notice.

- Will Toys R Us be accepting returns?

"It remains to be decided if some or all the stores will be closed". The failure of the United Kingdom unit comes as its parent company's fate has come into question while Toys R Us tries to restructure in Chapter 11.

"Staff have been paid their February wages and will continue to be paid for future work while the company is in administration". A deal could give give the Toys R Us Asia unit a valuation of $1 billion or higher, a source told Bloomberg.

Like Maplin, Toys R Us had struggled in the face of a weaker consumer environment.

Alex Neill from consumer group Which? said: "It's a worrying time for everyone when a company goes into administration but for customers it's important to remember that your consumer rights may be affected".

The chain has previously admitted its 1980s-style warehouse stores had become exhausted, expensive and suffered particularly from online competition.