Friday, 21 September 2018

Toys R Us faces bankruptcy

Toys R Us

LONDON: Toys R Us UK could go into administration as early as next week, with around 3,200 jobs under threat.

Directors from the struggling toy store chain are expected to make the move on Tuesday after failing to find a buyer.

The toy company has already notified the Pension Protection Fund (PPF) of its intentions.

The final straw was said to be a £15m VAT bill that needed to be paid early next week but is unlikely to be fulfilled, according to Sky News.

Toys R Us had been hoping that it could implement a five-year plan with the use of the funds, reducing staff and stock ranges, and closing stores. It was asking its potential buyers to immediately make a payment of £50m to pay off the lenders of its parent company in the United States, which entered bankruptcy protection last September.

However, the management seems to have lost faith that a deal will be agreed upon, with sources informing reporters that Moorfields Corporate Recovery had been qued to handle the administration.

Check Also

Pakistan loses business deal worth $940 million

KUALA LAMPUR/KARACHI: Pakistan has lost a business deal worth $940 million after the foreign acquirer of ...

Leave a Reply