Toys 'R' Us Australia put in administration after US stores fold
Customers enter a Toys R Us store in Emeryville, California. (Justin Sullivan/Getty Images/AFP)
SYDNEY: The Australian operations of American chain Toys 'R' Us was placed under administration on Monday (May 21), months after the closure of its US and British stores as the retail sector battles the online shopping boom.The business went into voluntary administration after the last bidder involved in an auction to sell the stores pulled out, administrators McGrathNicol said in a statement.
There are 44 Toys 'R' Us and Babies 'R' Us outlets across Australia as well as a distribution centre in Sydney, with the business employing 700 staff.The administrators said all stores "will remain open and continue to trade while they urgently explore options for completing a sale of the stand-alone Australian business as a going concern".The business could also be recapitalised, they added, without giving further details.Administration is a process whereby a troubled company seeks independent financial advice regarding its future.
Founded in 1948 as a small childcare store in Washington, DC, Toys 'R' Us evolved into one of the world's most recognisable kids' brands.But like other bricks-and-mortar retailers, it has struggled amid the rise of e-commerce and an internet buying culture.Toys 'R' Us announced in March that it would liquidate its US operations and shut down all 735 stores. The British arm of the embattled retailer said in February it was winding down its activities.
Source : http://www.channelnewsasia.com/news/business/toys-r-us-australia-put-in-administration-after-us-stores-fold-10255394