The massive Toys R Us closing down sale has started today as the beloved toy company went into administration.
At a number of stores around the country, item prices have been slashed with the sale starting at 25%.
Every single item is up for sale, including big brand names.
The administrator for the toy firm, Moorfields Advisory Limited, confirmed that the sale would apply to both Toys R Us and Babies R Us products.
It was also confirmed that all stores will continue to sell discounted items until they permanently close.
Toys R Us confirmed it’s no longer accepting refunds for returns, although unopened items in good condition can still be swapped.
Simon Thomas, Joint Administrator and Partner at Moorfields, said: ‘We’ve introduced heavy discounts across the entire Toys R Us store portfolio today. Customers are encouraged to take advantage of these special offers as soon as possible.
‘Whilst stock levels are generally high, customers may find that the more popular brands begin to sell-out over the coming days.’
Earlier, he had 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.’
Toys R Us was plunged into administration, putting 3,000 jobs at risk after the retailer failed to pay a £15million VAT bill.
The toy seller was scrambling to find a buyer before hitting the payment deadline on the hefty bill but failed with experts citing its inability to compete with Amazon and major supermarkets as the reason for its downfall.
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.
Insolvency specialist at Shakespeare Martineau, Michael Mulligan, said: ‘Toys R Us ultimately failed to adapt to the change in British shopping habits and did not properly invest in its business in order to compete with Amazon and the major supermarkets.
‘This is not the first high profile retail insolvency of the year and we expect more, particularly in vulnerable sectors such as retail, construction and the restaurant trade.
‘Recent insolvency statistics demonstrate that this is a growing trend and failing to take notice and adapt accordingly to changing consumer behaviour could be deadly for UK retailers.’
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, which employs around 3,000 staff in the UK, is understood to have struggled with cash flow pressures after sales were squeezed by worse-than-expected trading over the crucial Christmas period.
A checkout worker, who did not wish to be named, said: ‘We’ve received warnings about a potential administration and obviously heard bits and bobs on the news.
‘It’s been a very scary time, especially when you have children like me.
‘I’ve been working here for a few years and now I don’t know what to do. I’m just hoping that things will work out for the best, but you never know, do you?
‘Jobs in retail are hard to get hold of these days. If I lose my job here, there’s a possibility that I might have to retrain for.
‘This is close to home for me, it’s easy to sort out the kid’s day in day out. If I lost that then things would become very difficult, and I’d imagine other employees would have similar concerns.’
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