Efforts to save the jobs of 700 Toys R Us staff have failed, with 44 Australian stores set to close in the coming weeks.
Administrators were appointed to the Australian business in May, two months after its US parent collapsed. There were hopes the bankrupt retailer’s local operations could be merged with its Asian business and sold to a new owner.
However, as reported by the Sydney Morning Herald, the advisory firm McGrathNicol has released a statement saying: “Despite productive discussions with a number of interested parties, all of the parties have now advised the administrators they have withdrawn from the sale process. Therefore a going-concern sale will not be achieved and the business will now be wound down.”
All operations across Australia, including every store as well as its head office and distribution centre at Regents Park in Sydney, will close.
“Employees from head office, distribution centre and stores have been briefed by the administrators today,” McGrathNicol added.
The company’s online ordering system will shut on Friday and stock will be liquidated through the store network.
Staff entitlements such as super and upaid leave will rank as priority claims against Toys R Us assets and were expected to be paid in full, the administrators said.
The closure of the Australian Toys R Us operation is expected to create opportunities for retailers with bigger floorplans like Spotlight and TJ Maxx.
