Toys R Us to close in the UK

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A bid to save Toys R Us in the UK has failed, after it was announced the retailer’s remaining 100 stores would close.

The announcement came after efforts to find a buyer proved unsuccessful.

The full closure is due to take place over the next six weeks, with 25 stores already shutting. More than 3,000 people will lose their jobs as a result of the collapse.

Administrators were appointed in February to begin winding down the retail giant, following the failure to pay all of a £15 million tax bill, after which negotiations to find a buyer began.

A total of 120 different parties were involved, with the majority interested in stock alone and not the entirety of the business. But the talks eventually came to nothing.

The a spokesperson for the administrator said: “Any potential purchaser would have had difficulty in sorting things out, for instance getting the rights to use the name, which is held by the American parent.

“In addition there are many services provided within the group by different subsidiaries, so if you take over one part you have to make alternative arrangements or negotiate new terms. Put all that together and it becomes very complicated.”

He added that with the remaining stock undergoing further discounts, this was a chance for the consumer, offering “an opportunity for people to buy some nice toys at a good price”.

If your business is at risk of administration, speak to Gibson Hewitt. Contact our Business Recovery department today.

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