Feb 28, 2018
Toys R Us in the UK and electronics chain Maplin are on the brink of collapse, putting 5,500 jobs at risk.
The struggling retailers – two of the UK’s best known chains – are understood to have put administrators on standby after failing to secure a rescue deal.
Maplin – owned by Rutland Partners – had put the business up for sale, but talks with a potential buyer are understood to have broken down.
The toy chain in the UK – whose US owner filed for bankruptcy protection last September – is facing an imminent deadline for a £15m VAT bill which it will not be able to pay without selling the business.
It had managed to stave off collapse in December by agreeing a rescue plan to allow it to restructure its operations, including the closure of at least 26 stores planned for this Spring.
But with poor sales continuing into the new year and the VAT bill looming, the only route left for the firm to continue trading was to find a buyer which is now understood to be unlikely.
