In September last year Toys “R” Us filed for bankruptcy, now one of largest toy chains has gone into administration after failing to find a buyer.
There were high hopes for the buy-out of the toy giant, but the unlikelihood that the brand can pay back its $27.8 million debt has been hailed as the reason for its administration.
Yet the brand is still looking for a buyer, with joint administrator Simon Thomas saying they will make every effort to secure a potential buyer for all or part of the business.
“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.”
The future of the brick and mortar stores remains uncertain, yet the online arm of the business will be closed immediately.
Toys “R” Us employees around 3,000 people and plans to close 26 stores globally in the next few months.
According to Bloomberg, the decision to close around 180 stores comes as a strategic plan by the company as, “part of a reorganization plan to emerge from its September bankruptcy.”
The closures will begin next month, with Babies “R” Us locations accounting for at least half.
The chain has been operating at a loss seven out of the last eight financial years.
More details are due to surface as administrators continue to search for a buyer.