Hundreds of Toys 'R' Us employees to lose their jobs

Marco Green
June 21, 2018

700 people will be out of work.

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Australian stores of USA chain Toys "R" Us will shut down after administrators said Wednesday they were unable to find a buyer, the latest victim of the growth of online retail.

The closures will follow the collapse of the Toys R Us brand in the United States and in the UK.

The collapse of the Australian stores follows the failure of the US Toys R Us business in March.

"Toy and game retailers have always been warned that being a simple shop for toys would not be enough to compete, and Toys "R" Us was not able to adapt fast enough to changing market conditions".

But they have also also been fighting an uphill battle against larger domestic supermarket-style retailers - including K-Mart and Big W - that sell a mixed range of products for children and adults. The last Toys R Us stores there were closed on 24 April.

Administrators McGrathNicol had kept the 44 Toys "R" Us and Babies "R" Us outlets in the country open as they searched for a buyer or looked for options to recapitalize the business, without success.

But like other bricks-and-mortar retailers, it has struggled amid the rise of e-commerce and an internet buying culture.

The firm's chief executive, Dave Brandon, said at the time it was a "profoundly sad day" for the retailer. The US website has been shut down.

McGrathNicol said stock will now be liquidated through sales at existing stores before they, along with the head office and Sydney-based distribution centre close "in coming weeks".

People holding gift cards for the stores will be able to use them until July 5, provided they spend an additional amount equal to the value of the card, the administrators said.

Other reports by Click Lancashire

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