Toys R Us and Maplin have gone into administration and stores may close

Toys R Us and Maplin has collapsed into administration in the UK, putting 3,200 jobs at risk.

Fans of the toy store may need to start looking for a new place to shop as administrators begin an “orderly wind-down” of the company’s store portfolio after the firm failed to find a buyer.

Maplin said the capital needed to prop up the business – and shield against the tough trading conditions on the high street – had proved “impossible to raise”.

The 40-year-old firm said it had been hit by the impact of the Brexit-hit pound, a “weak consumer environment” and the withdrawal of credit insurance.

Toys R Us is one of the nation’s biggest toy retailers, with more than 100 stores in the UK and 1,500 in 33 countries across the globe.

Administrator Moorfields said that all stores will remain open until further notice but stock will start to be subject to clearance and special promotions.

The firm has been grappling with a £15 million tax bill as well as money owed to lenders.

While this process is likely to affect many Toys R Us staff, whether some or all of the stores will close remains to be decided.

Concerns were sparked last year when the US owner of Toys R Us filed for bankruptcy protection, which closed some of the 105 stores in the UK.

Moorfield partner Simon Thomas said: “We have informed employees about the process this morning and will continue to keep them updated on developments. We are grateful for the commitment and hard work of employees as the business continues to trade.”

Stores are subject to close without warning so if you do have any gift vouchers you are encouraged to use them immediately.

Moorfield is currently making every effort to secure a buyer for part if not all of the business to try and save thousands of jobs.

During this process Maplin will continue to trade and remains open for business.

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