Toys R Us troubles grow as British unit goes into insolvency administration

Toys R Us troubles grow as British unit goes into insolvency administration

Toys R Us troubles grow as British unit goes into insolvency administration

MORE than 2,300 jobs are under threat after Rotherham-based electronics chain Maplin went into administration.

"We will make every effort to secure a buyer for all or part of the business".

He said the company had worked hard over the recent months to mitigate the impact of a weaker pound following the Brexit vote, a decline in consumer confidence and the withdrawal of credit insurance.

The administration, which follows an unsuccessful attempt to find a buyer, will "conduct an orderly wind down" of the ailing retailer's United Kingdom business over the coming weeks.

They said all stores would continue to trade "until further notice" while stock would be sold at clearance discounts and other promotions. Customers are also being asked to redeem gift cards and vouchers, while they attempt to secure a buyer.

Administrators were called into Toys R Us and electronic goods retailer Maplin within an hour of each other on Wednesday morning, with the future of over 5,500 jobs across the United Kingdom now in doubt.

"During this process Maplin will continue to trade and remains open for business".

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Store workers in Kent face an uncertain future, after toys giant Toys R Us crashed into administration. In the meantime, gift cards will continue to be honoured in stores and online.

Ireland's Smyths Toys may benefit from the latest crisis at the United Kingdom arm of Toys R Us, but the wider United Kingdom retail sector is now braced for major job losses.

With hundreds of stores across the UK, Maplin owners are open to potential buyers that have expressed interest.

Shares in Mothercare, which competes with Babies R Us, slumped around 9 percent to an all-time low.

The chain has previously admitted its 1980s-style warehouse stores had become exhausted, expensive and suffered particularly from online competition.

"While the narrative about the sad demise of Toys'R'Us focuses on how it was killed by the Internet, data shows that the rise of multichannel player Smyths caused even more damage than Amazon", said Patrick O'Brien, retail research director at consultancy GlobalData.

Some are looking at innovative solutions, such as sharing their buildings with other stores or giving over part of their premises to businesses that consumers can not access from home - like cinemas or other entertainment venues.

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