All Australian Toys R Us Stores To Close Soon

Cornelia Mascio
Giugno 21, 2018

Following on from last month's development where Toys R Us Australia entered administration and was looking for an urgent sale, it would appear that the company was unable to find any such thing and will soon be shutting down entirely.

The administrators had kept the Australian chain open while they explored a recapitalisation and a sale of the business as a going concern.

Toys R Us in the USA first sought bankruptcy protection in September previous year, but by May it announced it would close or sell its 885 stores after failing to find a buyer for the business.

Roughly 700 employees will lose their jobs, it added.

The group's 885 United States stores were slated for closure after it was unable to meet the payments on billions of dollars in debt accumulated since it was bought by a real estate investor and two private equity firms in 2005.

McGrathNicol said stock will be liquidated through the store network.

The Toys "R" Us online ordering system will be closed on Friday morning, with open online orders "to be delivered to customers where goods have been paid for in full and the stock is available", administrators McGrathNicol said.

McGrathNicol told Toys R Us employees about the impending closure today.

People holding gift cards for the stores will be able to use them until July 5, provided they spend an additional amount equal to the value of the card, the administrators said.

Similarly, lay-bys will be honoured if the outstanding balance is paid and the stock is available.

Hurt by the emergence of cheaper toy suppliers and the rise of online shopping, Toys R' Us lost $16 million over the two past financial years, including $7.6 million in 2016-17 on sales of $276 million.

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