Toy World understands that KPMG has been appointed to handle proceedings and that the company will shortly cease trading.

Sources close to the matter have suggested that tough trading conditions have led to the imminent closure of Re:Creation, with the bank thought to be behind the decision to close down the current operation. A formal announcement is expected today, but Toy World has been told that the company will shortly cease trading.

It is understood that three members of staff have been retained to help the administrator to wind down the company over the coming weeks.

We will bring you more news as we have it.