Published: Sun, March 04, 2018
Sports | By Sarah Myers

Toys R Us And Maplin Go In To Administration

Toys R Us And Maplin Go In To Administration

Sky News City Editor Mark Kleinman later reported more woes for high street jobs, revealing that the restaurant chain Prezzo was planning to shut 100 of its 300 sites. The regional arm of the business has not secured a buyer and has fallen into this form of oversight as a way to protect its creditors.

"The challenging conditions in the United Kingdom retail sector are well documented", said Zelf Hussain at PWC, which is acting as administrators for Maplin.

British media reports that 2,500 jobs are at risk as a result of Maplin entering administration, while the Toys R Us situation places just over 3,000 jobs at risk.

Toys R Us had already been in the process of running down 25 of its sites with a closing down sales having started this week and empty shelves in many of those including Shrewsbury, St Andrews Retail Park in Birmingham and Tamworth. The retail chain's recent performance over the holidays made it unlikely that it will be able to pay off the debt. Taylor Wessing is now advising Rutland, a long-standing client which it acted for in a number of deals previous year, including the sale of Brandon Hire, the acquisition of Armitage Pet Care and an investment in Omar Group.

Toys "R" Us was fighting an uphill battle as many of their toys, baby clothes and products didn't require customers to go into the stores to touch, feel and try them on.

TOYS R Us was once a kids' paradise - but there are fears over its future.

Performance was also said to have been dented by soaring inflation, falling consumer spending and competition from online rivals.

With both companies undergoing administration, the jobs of over 5,500 people are at significant risk.

Toys "R" Us Inc.'s United Kingdom unit said it entered into administration yesterday after talks to sell the business fell through.

After attempting to find a buyer for the business as a going concern, administrators were called in today.

All of the stock is now subject to clearance discounts and other special promotions across every store.

PwC said in a statement there were no "immediate plans" to close stores or lay off workers, "although this will remain under review".

Administrators PwC said Maplin will deliver outstanding customer orders and gift cards will still be accepted in stores for now. "We will continue to trade the business as normal whilst a buyer is sought".

Can you still return items?

Otherwise, customers can use their deposits toward the cost of any in-store purchases by March 11.

Eversheds in 2014 advised Maplin on the consumer electronics retailer's £85m sale to investment house Rutland Partners.

Like this: