Struggling Maplin and Toys R Us collapse into administration

Sunday, 04 Mar, 2018

Moorfields said it still hopes to find a last-minute buyer for all or part of Toys R Us - the United Kingdom subsidiary of the eponymous USA company of the same name.

Toys R Us employs about 3,000 staff in the UK.

"We will be conducting an orderly wind down of the store portfolio over the coming weeks", Simon Thomas, a Moorfields Advisory partner, said in a statement. The collapse into administration follows Toys "R" Us filing for bankruptcy in the U.S. in September under the weight of $5 billion in debt.

The chain has previously admitted its 1980s-style warehouse stores had become exhausted, expensive and suffered particularly from online competition.

When are the Toys R Us closing down sales?

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.

The UK arm of Toys R Us - its U.S. owner filed for bankruptcy protection last September - has 105 shops.

It said it would continue to accept gift cards already bought and announced that most remaining stock would be on promotion to assist clearance.

Pay the balance for the merchandise they have included in their Take Time to Pay Agreement. Moorfields said the appointment of administrators to run the United Kingdom business would not affect stores in other countries.

Should the collapse be confirmed later today, the Pensions Protection Fund (PPF) will be lumped with a £37 million pensions black hole.

Toys R Us
Struggling Maplin and Toys R Us collapse into administration

Maplin became the second company of the day to collapse into administration and put another 2,500 jobs at risk.

"Mothercare must be looking over its shoulder with concern as there are some parallels with Toys R Us".

Both companies have been hit by a combination of falling consumer spending, fierce competition from online retailers and a rise in costs.

"It's devastating that over 5,500 High Street jobs risk being lost", said Long-Bailey, according to The Guardian.

Retail is tough right now, even for the strong players.

Bankruptcy announcements soon followed in Canada and in the UK. It is a subsidiary of a USA business which has been drowning in billions of dollars of debt.

These days, many shoppers don't want or need to drive 20 minutes to a big out-of-town warehouse to buy toys.

Eversheds in 2014 advised Maplin on the consumer electronics retailer's £85m sale to investment house Rutland Partners.