Photo by Caleb Wagoner/Flickr
It has emerged that the arm of Toys R Us in the United Kingdom is in search of a buyer, with hopes of having a new owner by the end of this week.
Sky News has reported that the UK arm of the international toy retailer is said to be looking for offers in an attempt to save the toy chain and the jobs of a minimum of 3,000 employees.
It had been believed that the business would be made safe when the firm received crucial support on pensions restructuring.
However, it now appears that a rushed sale deal could be required in order to prevent the UK chain from falling into bankruptcy.
Bankers are also looking for buyers for the rest of the European operations of the brand, across ten countries that outside of the United Kingdom.
Some sources informed Sky News that the firm’s business in the United Kingdom was in danger of immediate closure in the absence of the urgent additional funding. The news comes despite the toy chain already turning to a credit voluntary arrangement (CVA) which ended in plans to close down 26 of its loss-making stores.
The brand’s US parent company filed for bankruptcy last October 2017, prompting ramifications for the entire global brand as well as the suppliers of the brand.
Character Group is the maker of toys for franchises that include Pokemon and Peppa Pig in the United Kingdom, flagged the effect of the troubles of the retailer by lowering its own guidance in 2017.