Over 3,000 people will lose their jobs in the U.K. as Toys R Us announces all stores will close. The massive American retailer has been struggling and was unable to find a buyer as a last resort.
The Toy Chain Collapses
Staff at the 100 Toys R Us locations across the United Kingdom were informed that the retailer could not find a buyer. It collapsed into administration in February and was seeking to be bought out. Administrators were not successful in locating a buyer. All the stores locations in the U.K. will now close within the next six weeks.
The company appointed Moorfields to act as administrators. They had until midday on Wednesday to find a buyer. Now, all stores will be shut down. Beyond the stores themselves, the 67 staff members at the Toys R Us headquarters in Maidenhead will also be losing their jobs. In fact, on Wednesday, they were officially deemed redundant.
Shutting its Doors
Twenty five of the toy chain’s locations were already slated to close. This was a component of the company’s rescue package. They were locking their doors for the last time this week. Now, the remaining 75 locations are also running on their final days, to a maximum of six weeks.
Moorfields joint administrator and partner, Simon Thomas, explained that “some interest” had arisen in purchasing Toys R Us. Unfortunately, when the Wednesday deadline arrived, none of the interested parties were in a position to sign a deal.
“It is therefore with great regret that we have made the difficult decision to make a number of positions redundant at the Company’s head office in Maidenhead and proceed with a controlled store closure programme,” said Thomas. “We are grateful for the hard work of Toys R Us staff during this very difficult period and will be providing support where we can to those who have been made redundant,” he added.
He explained that the remaining Toys R Us and Babies R Us locations will remain open for the next month and a half. Thomas added that they will be extending a programme of nationwide discounts for the purpose of drawing customers. They encourage shoppers not to wait if they are seeking the best possible stock.