Toys R Us could go out of business TOMORROW with loss of 3,200 jobs as buyer talks flounder
TOYS R Us could go into administration TOMORROW putting 3,200 jobs at risk.
The chain is courting potential buyers in Europe hours before it plans to put British stores into administration, according to Sky News.
Hilco Capital, famed for saving HMV, and Alteri Investors pulled out of talks to take on the brand, according to reports.
The retailer has been in trouble for some time now, fighting to pay off a £15million VAT bill thanks to weak Christmas trading.
Before Christmas it had hoped to have staved-off the threat of administration after reaching a deal with UK’s pension lifeboat to plug a £9million blackhole.
Sources told Sky News that directors of the UK’s biggest toy retailer are likely to appoint administrators on Tuesday, putting more than 3,000 jobs at risk.
What are your rights if Toys R Us does go into administration?
- If you are owed an item as part of the retailer’s Take Time to Pay scheme go and collect the item asap.
- Use your giftcards asap. Once a company enters adminstration its unlikely that they will honour these.
- If you’ve bought an item and you want to get your money back. While a company is still trading it should continue to honour your return rights.
- Once a company enters adminstration you may have to claim back money from your credit card or debit card provider.
- If you bought the item using a credit card then you’ll be covered under Section 75 of the Consumer Credit Act – as long as you spent over £100 and under £30,000.
- If you paid using a debit card then you can claim back the cash from your bank using Chargeback.
- If you’ve bought presents online and paid by PayPal, you may be able to get money back by its Buyer Protection policy if they don’t arrive or it doesn’t match the seller’s description.
- To do this you must first raise a dispute with the seller – you have 180 days to do this after you’ve made the payment.
Corporate company Moorfields who worked on video rental chain Blockbuster five years ago is said to be set to overlook Toys R Us’ potential insolvency.
More than 3,000 jobs are at risk at the trouble toy store
The retailer has until February 27 to pay off the bills but according to the source, the retailer’s future isn’t looking hopeful.
As part of the firm’s Company Voluntary Agreement (CVA) agreement, it had announced that it will be closing 25 of its 106 stores across the country this spring leaving 800 people without a job.
Unless the retail giant avoids administration, the number of job losses rises to 3,200. It is yet to confirm what will happen to the employees.
But it was hoped that the deal would give the business time to restructure and pay off its debts.
But at the beginning of the month, it was reported the company’s American bosses had begun an “urgent search for a buyer” for the UK business after poor Christmas trading.
The company has said its large, warehouse style stores, which were opened in the 1980s and 1990s are now too big and expensive to run.
Toys R Us filed for bankruptcy in the US and Canada last September, whilst the entire European side of the store business including 236 stores outside the UK in 10 countries is also on the market.
