Toys R Us has collapsed into administration in the UK. Accounting firm Moorfields have been appointed administrators and have released the following statement:
“We will be conducting an orderly wind-down of the store portfolio over the coming weeks.
“All stores remain open until further notice and stock will be subject to clearance and special promotions.
“We’re encouraging customers to redeem their gift cards and vouchers as soon as possible.
“We will make every effort to secure a buyer for all or part of the business.”
A failure to pay rent, a £15 million VAT (Sales Tax) bill, and a shortfall in it’s pension fund of £25 million were instrumental in the collapse. However core to it’s collapse was a failure to develop it’s web retail, being too slow to embrace omnichannel, and a burden of too many warehouse stores which failed to deliver any true shopping experience. It remains however a sad day for UK retail, and a concerning time for its over 3000 staff.
Our social media manager, Matt Booker was inside a Toys R Us store as the news broke, and gave this instant reaction on Facebook Live.