All 100 Toys R Us stores in the UK will close within six weeks with the loss of 3,000 jobs after administrators failed to find a buyer.
Toys R Us collapsed into administration last month and launched a nationwide closing down sale in a bid to bring in some cash.
The toy chain appointed Moorfields as administrators at the end of February but no buyer was found by a deadline of midday on Wednesday, meaning that all stores will shut. Moorfields said 67 staff at Toys R US’ headquarters in Maidenhead were made redundant on Wednesday.
A total of 25 stores already earmarked for closure as part of a failed rescue package will shut by tomorrow, with the remaining 75 outlets closing in the next six weeks.
Simon Thomas, joint administrator and partner at Moorfields, said there had been “some interest” in buying Toys R Us but ultimately no party was in a position to do a deal before Wednesday’s deadline.
Mr Thomas added: “It is therefore with great regret that we have made the difficult decision to make a number of positions redundant at the Company’s head office in Maidenhead and proceed with a controlled store closure programme.
“We are grateful for the hard work of Toys R Us staff during this very difficult period and will be providing support where we can to those who have been made redundant.”
“All of the remaining 75 Toys R Us and Babies R Us stores will remain open until further notice. We’re extending the nationwide discounting programme and would like to encourage customers to take advantage of the special offers available in store while stock levels remain high.”
Toys R Us is one of a slew of high street names to have been hit by a cocktail of rising inflation, increasing business rates, a hike in minimum wages and the surging popularity of online competitors such as Amazon.
Maplin also recently went into administration and New Look announced last week that it was cutting hundreds of jobs.
Many of Toys R Us’s small stores have proved relatively resilient in recent years and the company’s online performance has been robust too. But the bigger, warehouse-style outlets, opened in the 1980s and 90s, have become expensive to run, placing a heavy burden on the balance sheet.
Customers will still be able to take advantage of discounts across the Toys R Us range in stores that remain open.