Toys ‘R’ Us in Australia has lost its battle for survival with directors today putting the 44-store chain into administration.
The move threatens up to 2700 jobs, including 700 full-time positions.
Insolvency firm McGrathNicol said partners Jason Preston, Keith Crawford and Barry Kogan were put into Toys ‘R’ Us (Australia) and Babies ‘R’ Us (Australia) after the withdrawal of the final bidder looking over the struggling businesses.
The stores, including four in perth. and a distribution centre in sydney would remain open while McGrathNicol urgently explored options for a recapitalisation and tried to complete a sale of the stand-alone Australian business as a going concern, the firm said.
Toys ‘R’ Us (Australia) had been seeking a rescue since its US parent company collapsed in March under a mountain of debt inherited as part of a $US7.5 billion buyout of the group by private equity firms in 2005.
At the time of the US failure, the Australian offshoot said it was “working through a range of options for our business locally and as always will relentlessly strive towards bringing fun, joy and happiness to the hearts and minds customers for many years to come”.
Last financial year, the business lost $7.6 million on…