Toys R Us has fallen into administration (Picture: PA)

Retailer Toys R Us has fallen into administration, putting 3,000 jobs at risk.

The final straw is believed to be a £15m VAT bill that needed to be paid by today.

Administrator Moorfields has been appointed to conduct what it called an orderly wind-down of the company’s store portfolio, although the firm insisted it is still seeking a buyer.

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Simon Thomas, Moorfields partner, said: ‘We will be conducting an orderly wind-down of the store portfolio over the coming weeks.


‘All stores remain open until further notice and stock will be subject to clearance and special promotions.

‘We’re encouraging customers to redeem their gift cards and vouchers as soon as possible.



‘We will make every effort to secure a buyer for all or part of the business.’

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Caption: File photo dated 27/02/18 of Toys R Us at St Andrews Retail Park in Birmingham, as the retailer has fallen into administration, putting 3,200 jobs at risk. PRESS ASSOCIATION Photo. Issue date: Wednesday February 28, 2018. See PA story CITY ToysRUs. Photo credit should read: Aaron Chown/PA Wire

Photographer: Aaron Chown

Provider: PA

Source: PA

All stores will continue trading until further notice and much of the stock will be subject to clearance discounts and other special promotions, Moorfields confirmed.

‘Whilst this process is likely to affect many Toys R Us staff, whether some or all of the stores will close remains to be decided.

‘We have informed employees about the process this morning and will continue to keep them updated on developments. We are grateful for the commitment and hard work of employees as the business continues to trade,’ Mr Thomas added.

Gift cards and vouchers will be honoured while the stores continue to trade, but customers are being encouraged to redeem vouchers as soon as possible as stores may be subject to closure without notice.

No further gift cards will be sold from Wednesday.

Toys R Us has 105 stores in the UK and thousands of jobs will be lost if the company closes.

Richard Lim, chief executive of Retail Economics said: ‘All is not well on UK high streets.

‘The perfect storm of spiralling operating costs, softer consumer demand, and seismic structural changes has claimed another victim.

‘Put simply, the retailer was too slow to embrace omnichannel, were burdened with too many stores and failed to deliver a retail ‘experience’ good enough to stand out from their competitors.’