Top-Toy, which runs the chains Cousin BR and Toys R Us in the Nordic countries, has been declared bankrupt at the request of the Board of Directors.

The announcement follows a “highly unsatisfactory” Christmas period, meaning that the company cannot continue its reconstruction plans.

Top-Toy’s CEO Per Sigvardsson stated in a press release: “We had come a long way, had approved our plan and have worked 24 hours a day to create the framework for a reconstruction of Top-Toy, but we must recognise that due to failing Christmas sales, we are no longer able to continue the reconstruction.”

In November, Top-Toy requested to be reconstructed – what was previously called a suspension of payments – and the company received a plan for a new Top-Toy shortly before Christmas. As part of the plan, the reconstructors explored all options, including any divestments, but a solution has not been found.

The bankruptcy petition means that Top-Toy’s management has been taken over by an administrator who is now tasked with realising as much value as possible during the bankruptcy proceedings.

Lawyer Søren Aamann Jensen from Kromann Reumert, who has been appointed curator along with lawyer John Sommer Schmidt from Gorissen Federspiel, commented: “We are now starting a dialogue with the creditors on how the estate should be handled.”

Top-Toy says its situation has been worsened by increased digitisation, higher numbers of competitors, and changing play habits in children. In the past financial year, the retailer lost DKK 149m on the operation, and as a consequence of the reconstruction had to write down the company’s goodwill, resulting in a loss of DKK 2b.

Customers can find information about which stores are open on the chains’ website.