Don’t panic, Australian’s aren’t saying goodbye to Toys ‘R’ Us.
The company has gone into voluntary administration after the last potential buyer for the retail giant withdrew their bid. Advisory Firm, McGrathNicol has been appointed as voluntary administrators and has released a statement revealing they are exploring options for the sale of the chain.
The stores will be open and trading as usual while this process is underway.
What is voluntary administration?
Voluntary administration occurs when a company voluntary passes control to a nominated administrator who is also a licensed insolvency practitioner. Their goal is to reimburse creditors as soon as possible.
Unlike liquidation which is used to close a company, administration is used as a rescue tool.
Is Toys ‘R’ Us Australia closing?
In March there were conflicting reports on whether Toys ‘R’ Us Australia would continue business as usual or liquidate following reports of bankruptcy and closures in both the US and the UK.
The US reported all 885 of its stores would be sold or closed with up to 33,0000 jobs at risk.
After the news broke, the Wall Street Journal quoted Toys ‘R’ Us chief executive David Brandon, by announcing the store was likely to liquidate in France, Spain, Poland and Australia.
Toys ‘R’ Us Australia has directly disagreed with this statement saying it’s business as usual in their 39 stores across the country.
