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Toys R Us in administration today

25 February 2018

Toys R us in administration logo

Toys R Us is likely to go into administration as it has been unable to pay its £15m VAT bill and the no last minute investors have come forward with fresh capital. 

Officials from the Pension Protection Fund (PPF), Toys R Us UK's biggest unsecured creditor, were notified late last week of the impending insolvency amid fading hopes of a rescue deal.

Toys R Us UK trades from more than 100 stores, and only made it through the Christmas period after a company voluntary arrangement was agreed with with its landlords to try and ease cashflow.

It is not really surprising that Toys R Us has suffered as children almost buy their own toys on their parent's Ipads these days!  Online sales have increased 30% in this last year alone.  Also as Toys R Us sell well known brands like Barbie and Lego these are easily found online. 

RBS has also announced its closure of a quarter of its retail estate as banking shifts online as well.

Toys 'R' Us's UK operations are understood to have been loss-making in seven of the last eight financial years.

Accounts for the year to January show turnover of £418m, on which it made an operating loss of £0.5m.

If you have ordered something from Toys R Us see this page

Watch the video below to find out your rights as an employee of Toys R Us

Categories: Retail, What is administration

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