The retailer Toys R Us has gone in administration putting the jobs of three thousand people at risk.
The Corporate recovery specialist Moorfields have been appointed and have said that for the moment the stores will continue to trade until further notice.
Joint administrator Simon Thomas said: “Whilst this process is likely to affect many Toys R Us staff, whether some or all of the stores will close remains to be decided.”
The chain has struggled with competition from internet trading and has been seeking a possible sale in recent months but has failed to find a buyer.
It’s American owner filed for bankruptcy protection last September and the Company is facing an imminent deadline for a £15m VAT bill which it will not be able to pay without selling the business.
It had managed to stave off collapse in December by agreeing a rescue plan to allow it to restructure its operations, including the closure of at least 26 stores planned for this Spring.
It’s warehouse style stores opened in the 1980’s and 90’s are deemed no longer competitive in the changing market and attract high rental costs.The Company has alos been accused of failing to move with the times