Toys "R" Us U.K. Enters Administration, Could Result In Loss Of 3000 Jobs
Things are going to get worse for Toys 'R' Us before they get better, and the next phase of their [...]
Things are going to get worse for Toys "R" Us before they get better, and the next phase of their rebuilding process will start in the United Kingdom.
After announcing a second wave of store closings in the United States, the U.K. side of Toys "R" Us has entered the administration phase, with administrators organizing "an orderly wind-down" (via BBC). Toys "R" Us currently has 105 stores open in the U.K., and as of now, those stores will remain open. When or if they do shut down though, they will affect around 3000 jobs.
Joint administrator Simon Thomas said: "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 will make every effort to secure a buyer for all or part of the business."
Part of this is in regards to the 1.5 million dollar tax bill they owe, and while retail stores are remaining open for a little while, customers who have gift cards and vouchers are being encouraged to spend them now, as no more gift cards or vouchers will be sold.
Also, reservations that are part of their "take time to pay" service will be honored, but the outstanding balance needs to be paid and items collected by March 11. You can also use any deposits you made towards any other item in the store by March 11.
Toys "R" Us actually filed for bankruptcy in September but was able to postpone administration until December after striking a deal with the Pension Protection Fund (PFF). That deal will give those who have already retired 100% of their pension payments, while those who are still working will receive 90%.
Regional managing partner at the Begbies Traynor firm Julie Palmer said Toys "R" Us had "fallen foul of a perfect storm hitting bricks-and-mortar retailers across the board. Rising costs from the National Living Wage, apprenticeship levy and inflation, combined with ongoing pressure on consumer spending and the continued rise of the internet are hitting retailers with a big High Street presence hard."
You can read more about Toys "R" Us' U.S. closures here.0comments