Toys “R” Us is moving forward with UK store closures after failing to secure a buyer for all or part of its businesses. The retailer’s 100 locations in the region will cease operations in the next six weeks, leading to roughly 3,000 job losses.
Toys “R” Us entered into insolvency administration in the UK on February 28, appointing Moorfields Advisory as administrators for the brand. While Moorfields continues to seek potential buyers for parts of the business, a total of 67 redundancies have been made at the retailer’s UK head office in Maidenhead.
As part of the proposals put forward in the company’s CVA (which was approved in December 2017), 25 Toys “R” Us stores in the region were previously earmarked for closures. A number of those locations have already shuttered, with the remaining stores closing their doors today and tomorrow.
After entering into insolvency administration, the retailer announced that its stock would be subject to clearance and special promotions. Those programs have been extended with many products available at 30% discounts.
Toys “R” Us (along with certain of its American and Canadian subsidiaries) filed for US bankruptcy protection last September. At that time, Toys “R” Us said it would use the court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure in order to invest in long-term growth.