The UK subsidiary of Toys R Us is again at risk, with more than 3,000 jobs at the company in peril as the company is put up for sale.
Last year, Toys R Us narrowly avoided the fate of its bankrupt US parent company, staggering on thanks to the closure of several stores and agreements with landlords to accept less rent on those that remain open.
However, advisors that are working to protect the US Toys R Us chain have marked the UK business and the company’s European stores as for sale as part of a larger plan to financially restructure its US parent. The American parent company filed for bankruptcy protection in the US and Canada after racking up $5b in debt. Last month, they announced they would be closing 180 stores across the US.
Speaking to the Guardian, sources suggest that the company wants to wrap up a deal before the end of the month, as several payments are due.
The retailer has posted a loss for seven out of the last eight years, struggling to compete in a marketplace that is shifting online, but also with issues of location as the large toy warehouses that the company operate don’t have as much relevance in a marketplace dominated by the convenience of the high street.
The company sell an extensive range of video games and video game related merchandise, so any closures would be a blow to the physical games retail space.