Toys ‘R’ Us Australia is shutting down
Approximately 700 workers will lose their jobs within the next few weeks as the business is wound down.
Administrators McGrathNicol spoke to employees on Wednesday to inform them that no buyer had come forward, meaning the chain would be closing down.
“Despite productive discussions with a number of interested parties, all of the parties have now advised the Administrators that they have withdrawn from the sale process,” reads a media release from McGrathNicol.
“Therefore a going-concern sale will not be achieved and the business will now be wound down.”
“All accrued employee entitlements will rank as priority claims against TRUA and are expected to be paid by the Administrators in full from proceeds from asset realisations.”
Stock will be liquidated through sales over the coming weeks, and the online ordering system will be closed on 22 June.
Open online orders will be honored where the customer has paid in full and the stock is available.
Until July 5, customers who hold gift cards will be able to use them provided they spend an additional amount equal to the value of the card, and lay-buys can still be claimed.
Toys ‘R’ Us 885 US stores were marked for closure after the group was unable to pay billions of dollars in debt accumulated since 2005.
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