U.K. Toys“R”Us Falls into Administration

Simon Thomas and Arron Kendall, partners in Moorfields Advisory, have become joint administrators to Toys”R”Us in the U.K.

The administration, which follows an unsuccessful attempt to find a buyer, will “conduct an orderly wind down” of the ailing retailer’s U.K. business over the coming weeks. This does not involve or affect the ongoing operations of the global Toys”R”Us group outside of the country.

All 100-plus stores in the U.K. will continue trading until further notice, with much of the stock being subject to clearance discounts and other special promotions. Customers are being asked to use their gift cards and vouchers as soon as possible. No additional gift cards will be sold, nor will customers be able to order merchandise online in the country.

Deposits paid under Take Time To Pay agreements toward large purchases will be honored as long as the outstanding balance is paid and the products are collected by March 11, 2018. Otherwise, customers can use their deposits toward the cost of any in-store purchases by March 11.

Thomas remarked: “We will make every effort to secure a buyer for all or part of the business. The newer, smaller, more interactive stores in the portfolio have been outperforming the older warehouse-style stores that were opened in the 1980s and 1990s.

“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. We have informed employees about the process and will continue to keep them updated on developments. We are grateful for the commitment and hard work of employees as the business continues to trade.”