Toys R Us is expected to fall into administration today after failing to find a buyer for the UK business.
The toy retailer, which employs around 3,000 people in the UK, has lined up Moorfields to handle the process.
Alvarez & Marsal has been managing the global restructuring of Toys R Us, however, City A.M. understands it could not carry out the administration in the UK due to a conflict of interest. It would be inappropriate for Alverez & Marsal, which has been trying to maintain Toys R Us’ standing globally, to then profit from the company’s collapse in the UK.
Toys R Us operates more than 230 shops in 10 European countries, and has been seeking a buyer for the European business, although a suitor has not yet been confirmed.
Meanwhile, in the UK, Toys R Us has a £15m VAT bill due, and has been unable to find a buyer. The retailer has a large portfolio of out-of-town stores, and has struggled to keep pace with Amazon as more shoppers buy their toys online.
