Toys R Us UK falls into administration and looks for new owners

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Toys R Us UK falls into administration and looks for new owners
Image credit: Flickr (CC) / Mack Male

The problems for Toys R Us continue to become more and more serious. Now, the UK branch is falling into so-called administration. It also looks for new owners to save the business and keep the jobs for 3000 people.

If no buyers are found, about 3000 staff of Toys R Us UK are facing redundancy, the Guardian reports. The Toys R Us collapse comes along the administration of electronics chain Maplin and other several big names.

As a result, the problem has reached the government. Moorfields is the accountant firm which is now managing the administration of Toys R Us in the UK. It says it hopes to save at least parts of the business via a sale. The newer and popular stores are the main goal and hope to attract interest from buyers.

“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 this morning and will continue to keep them updated on developments. All stores remain open until further notice and stock will be subject to clearance and special promotions”, Simon Thomas, a partner at Moorfields, says to the Guardian. He also adds that gift cards and vouchers will be honored. Still, he also advises holders of such bonus items to redeem them as soon as possible, before any store closures took effect

Toys R Us has 180 stores in the UK and employs 3000 people. Some of the stores are closing down, but that seems is not enough to save the whole business.