Seems the discounting will continue; Toys ‘R’ Us enters...

Seems the discounting will continue;

Toys ‘R’ Us enters voluntary administration, 700 local jobs at risk

Closing down posters are in the windows of a Toys 'R' Us store in London. Picture: AFThe Australian arm of Toys ‘R’ Us was placed into administration on Monday night, putting the future of more than 700 staff in doubt.

McGrathNicol was appointed voluntary administrator of Toys ‘R’ Us (Australia) and Babies ‘R’ Us by a resolution of the company’s Australian directors.

The move follows the collapse of the retailer’s US parent, which filed for chapter 11 bankruptcy protection late last year and has since moved into liquidation, with more than 800 stores closing.

Toys ‘R’ US Australia’s operates 44 retail stores across Australia and a distribution centre at Regents Park in Sydney, and employs approximately 700 permanent staff, McGrath Nicol said in a statement.

McGrathNicol said in a statement it “intends for both businesses to continue operating while it urgently explores options for a sale of the business as a going concern, or recapitalisation”. No employee positions are affected by the appointment, it added

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McGrath Nichol said gift cards and vouchers will be honoured provided customers spend an additional equivalent amount in a Toys ‘R’ Us store.

However gift vouchers will not be honoured online and lay-by purchases will be honoured if the outstanding balance is paid and the stock is available.