Toys R Us has entered into administration in the UK, with the company’s bankruptcy leading to its online store being shut down and massive clearance sales in the region.
The retailer was facing a £15m tax bill, though poor sales across its stores have made it impossible for the company to pay off its debt. While all 105 Toys R Us are remaining open for the time being, the immediate closure of the retailer’s online store will be followed by clearance sales across all physical stores, with those in possession of gift cards urged to cash them in as soon as possible.
Toys R Us Online Store Shuts Down
This news follows in the wake of Toys R Us’s US bankruptcy in 2017, which saw its dwindling market share as a video game retailer being cited as a major reason for its downfall. In 1999 the company was the #2 retailer for video game software in the US, though in 2017 it had less than 1% of the market share thanks to the rise of online retailers such as Amazon.
Those predicting that the company would move to an online-only capacity have been left scratching their heads after Toys R Us UK completely shut down its online efforts. While its online catalog is still available to browse, the front page of the site now contains an “in Administration” note detailing the course of action for those seeking refunds, looking to redeem gift cards, or who have signed into Take Time to Pay agreements.
Toys R Us Sale and Clearance
Toys R Us UK managed to fight off entering into administration back in December, after the Pension Protection Fund (PPF) put £9.8m into the company in order to help with its retirement scheme. Former employees who have already retired will continue to receive 100% of their retirement plan, though current employees will only receive 90%.
Toys R Us has been struggling to adapt to a market dominated by online retailers, with many of its physical stores in the US having been shut down, and now the UK set to follow suit. Stores across the UK will now offer massive discounts in order to clear out stock in preparation for nationwide closures.
The retailer was once a staple for gamers, with it stocking the latest video games and consoles since the rise of the gaming industry in the ’80s. However, with many now moving to digital-only collections or choosing to purchase their games from the likes of Amazon, Toys R Us has struggled to stay afloat as a result of its inability to compete with its competitors’ prices. Its higher-ups have urged anyone interested in purchasing the company to step forward as soon as possible.
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