Toys 'R' Us's United Kingdom arm enters administration after failed sale

Javier Stokes
March 4, 2018

UK retail shares are on the back foot after Toys R Us UK and Maplin entered administration on the same day, putting 5,500 jobs at risk.

As heavy snow batters the country, it's been a chilling morning for the high street: the United Kingdom division of toy retailer Toys R Us went into administration today, threatening 3,000 jobs in Britain.

The British toys retail chain had been searching for a buyer for several weeks before formally appointing administrators on Wednesday.

"Despite its pledge to shut down stores, to scale back operations to save costs and its frantic attempts to find a buyer, Toys R Us has unfortunately fallen foul of a ideal storm hitting bricks and mortar retailers across the board".

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

Attempts to sell the business have failed, meaning that the retailer will start plans to close down potentially all of its 106 United Kingdom stores.

Meanwhile, electronics company Maplin fell into administration after talks with potential buyers fell through.

Maplin stores will continue to trade through the administration process.

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- Will Toys R Us be accepting returns?

When are the Toys R Us closing down sales?

Graham Harris, the company's chief executive, said: "During this process Maplin will continue to trade and remains open for business".

Moorfields says all outstanding "click and collect" orders placed online will be fulfilled in the ordinary course of business, subject to the stock continuing to be available, and advised they should be collected as soon as possible.

This latest blow follows a wave of closures all over the US as the toy giant, a staple of American family life since its founding in 1948, fails to hold its ground against online shopping platforms. We have informed employees.

However, Maplin has confirmed its stores will stay open through the administration process.

The retailer had until February 27 to pay off the bills but now the deadline has passed, the retailer's future isn't looking hopeful.

Sinn Fein Assembly member Conor Murphy said: "Both companies have stores in a number of locations across the north so any job losses would be widely felt". All name-brand and Babies R Us products will be discounted, administrators Moorfields announced.

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