Toys ‘R’ Us Oz Enters Administration After Sale Falls Through
Following the collapse of its UK and US counterpart, Toys ‘R’ Us Australia has entered voluntary administration – debunking previous reports which claimed it would be ‘business as usual‘, despite the state of its international arm.
The news comes after plans to sell the Australian business fell through, following the “withdrawal of the final bidder”.
In conjunction with its Babies ‘R’ Us subsidiary, the Board of Toys ‘R’ Us Australia has appointed McGrath Nicol as voluntary administrator.
McGrath Nicol announced last night it was “urgently” exploring options to complete the sale of the stand-alone Aussie business “as a going concern, or a recapitalisation through the Voluntary Administration process”.
All Australian Toys ‘R’ Us stores are expected to stay open as administrators explore sale options.
As previously reported, the collapse of Toys ‘R’ Us Australia will likely benefit retailers such as Big W and Kmart, who have recently moved to expand their electronic toy portfolio.
Former Toys ‘R’ Us suppliers are reportedly desperate to range their brands elsewhere.
The collapse of Toys ‘R’ Us Australia jeopardises 700 jobs in 44 stores across Australia. McGrath Nicol state no employee positions are affected by the appointment, with entitlements expected to be paid at this stage.
As previously reported, Toys ‘R’ Us’ American business collapsed in March this year, closing over 700 US stores.
Commentators speculate whether Amazon will purchase the former Toys ‘R’ Us sites, building a complimentary physical store presence.
Toys ‘R’ Us’ Irish and UK arm collapsed shortly after.
Australian administrators, McGrath Nicol, affirm gift vouchers will still be honoured, provided consumers spend the same amount in cash in-store.
Online orders will only be fulfilled if products have been paid for, and stock available.