All Toys R Us stores expected to close

All of the toy retailer's UK stores are expected to shut their doors in the next six weeks.

Media playback is unsupported on your device
Toys R Us administrator explains why the company was too difficult to sell

All Toys R Us stores in the UK will close in the next six weeks following the chain's collapse into administration.

Attempts to find a buyer for the US retailer's 100 stores in the UK have failed.

Twenty five stores have either closed in recent days or are due to shut by Thursday.

The collapse will put more than 3,000 people out of work as a dismal period for the retail sector continues.

Administrators Moorfields Advisory were appointed last month to start winding down the UK's biggest toy retailer after it struggled to pay a £15m tax bill.

Simon Thomas, joint administrator, said Moorfields' had negotiated with 120 different parties, most of them interested in buying up stock, and half a dozen looking at the whole business. But in the end Mr Thomas said the business had simply proved too hard to sell.

He told the BBC: "Any potential purchaser would have difficulty in sorting things out, for instance getting the rights to use the name, which is held by the American parent.

"In addition there are many services provided within the group by different subsidiaries, so if you take over one part you have to make alternative arrangements or negotiate new terms. Put all that together and becomes very complicated."

Mr Thomas said remaining stock would be discounted further and "it should be an opportunity for people to buy some nice toys at a good price."

The administrators said that Toys R Us had outstanding liabilities of around £300m, including a £70-90m pension fund shortfall.

US Debt

The US parent company filed for bankruptcy in September and reports suggest it may start closing its 800 stores in the US as early as this week.

The business was bought in 2005 by a group of investors including private equity firms Bain Capital and KKR, which loaded it with some $5bn (£3.6bn) in debt. The company was crippled by interest payments which at times reached $400m a year.

In the UK Toys R Us joins a long list of high street retailers including Maplin and Claire's that have run into difficulties this year.

Many have been hit by changes in consumer spending habits, a squeeze on disposable income, higher inflation and the national living wage, and the prospect next month of increases in business rates.




Date: 14 March 2018 | Source: BBC

More UK News

Asos to ban silk, cashmere and mohair from its website

The fashion retailer updates its animal welfare policy to say its site will be free of the materials..

Medicinal cannabis use to be reviewed by government

But Home Secretary Sajid Javid says the ban on recreational use of the drug will continue

Ineos loses fracking 'ban' challenge

Petrochemical firm Ineos loses its Court of Session challenge to the "effective ban" on fracking in ..

Missing man's police drone rescue in Norfolk 'a miracle'

Peter Pugh, 75, was found up to his armpits in a muddy creek nearly a day after going missing

Microbead ban: Here are some natural alternatives

As the sale of products with microbeads is banned, skincare experts recommend the best alternatives..

Legalising cannabis: What you need to know

The debate on legalising cannabis has been reignited by the case of a 12-year-old boy with epilepsy..
View More

More Telford News

 Tip-off to Telford councillor led to police cannabis raid

Information passed to a Telford & Wrekin councillor led to a cannabis ..

 Trapped badgers rescued from pipe near Newport

Two trapped badgers were to lucky to be found and rescued by the RSPCA aft..

 Pupils steering through challenge as school Stem contest hots up - with video

Budding young inventors have been hard at work as part of the MNA Stem Cha..

 Telford's Got Talent finals: Winner takes it all as duo Intrigue walks away with top prize - with video and pictures

It was winner takes it all when singing duo Intrigue walked away with the ..

 Further arrests made in connection with Telford assault

Police have now made four arrests in connection with an assault in Telford ..

 Motorhome company gives runner a ‘lift’ ahead of 95-mile marathon

A motorhome company from Telford has given ultra-runner Keith Robins, the l..
View More

Telford Businesses

Calendar Countdown

[[countdown here]]

Upcoming Events in Telford

14 Jul 2018

8:30am - 6pm


Adult (16 - 64) - £15

Child (5 -15) - £5.00

Senior (65+) - £14.00

Family - £35

View Details

15 Jul 2018

11am - 4pm


Free Entry

View Details

21 Jul 2018

Saturday - 10am - 5pm

Sunday - 10am - 6.30pm


A ticketed charity gala open-air concert in aid of the Severn Hospice, Brass Night of the Proms, will take place on Saturday evening, 9th July from 7.30pm. Compered by BBC Radio Shropshire presenter, Eric Smith, it will feature the Ifton Colliery Band and the Band of the Royal Signals; covered seating will be provided, or bring a blanket and enjoy a picnic on the grass. Please visit the website for more information.

View Details

04 Aug 2018

Practice starts at 4pm on Friday 3 August

Racing starts on Saturday 4 August at 12noon and Sunday 6 August at 10.30am


Free

View Details
View More