Toys R Us UK Administration

The magical toy superstore, Toys R Us UK, entered Administration on the 28 February 2018 after a period of losses in sales.

With their £15m tax bill overdue, over 3,000 jobs are at risk as attempts to sell the company have failed, meaning 106 stores face closure in the near future. Simon Thomas and Arron Kendall, partners at insolvency firm Moorfields Advisory, were appointed joint administrators of Toys R Us. They said in a statement: “We will be conducting an orderly wind-down over the coming weeks. All stores remain open until further notice and stock will be subject to clearance and special promotions.”

Large volumes of trade are now bought online from giants like Amazon and Ebay due to the growth in technology. Retail experts said Toys R Us lacked investments into their website and stores.

For further help, Toys R Us have a FAQ page:

https://toysrus.co.uk/pages/we-are-here-to-help

The process of Company Administration can provide a company with a moratorium from enforcement action by creditors while a rescue plan is formulated. A trade or HP creditor cannot seize goods and a landlord cannot forfeit a lease without specific leave of the court. During the moratorium there will be the opportunity to secure a beneficial sale of the company’s business and assets at going concern values and potentially preserve jobs.

To read more about Company Administration, click here.

To see Michael Chamberlains thoughts on Toys R Us Administration, click here.

If your company has become insolvent and you require protection of the legal process, Contact us – 0113-2420808 or advice@chamberlain-co.co.uk