The problems for Toys R Us continue. The popular toy store chain collapsed in the US and UK. Sadly, we can now add Australia to the list, too. Toys R Us Australia has entered voluntary administration, ChannelNews reports.
The reason for this is that Toys R Us couldn’t find a buyer for the Australia branch. It turns out the final bidder withdrew.
The decision also includes Babies R Us. McGrath Nicol is going to be the voluntary administrator. McGrath Nicol announced last night it was “urgently” exploring options to complete the sale of the stand-alone Aussie business “as a going concern, or a recapitalisation through the Voluntary Administration process”.
The Australian Toys R Us stores will continue to open as normal for the time being. This was the same model the US and UK branches did before they decided to close down. Hopefully, the Australian branch will find a buyer and will be saved.
Toys R Us has 44 stores in Australia and employs around 700 people. Currently, all employees will continue to receive entitlements. Gift vouchers will also be honored, but with a twist. Customers will also have to spend the same amount in cash in-store. Online orders will only be fulfilled if products have been paid for, and stock available.