Toys R Us to close all stores nationally with 700 jobs to go

ALL stores of a major shopping retailer are to close across in Australia within the next few weeks with e loss of 700 permanent jobs after last several ditch sales attempts fell apart.

Toys R Us Australia cannot be saved, say administrators McGrathNicol, and all stores will close with the loss of 700 jobs. Picture: Spencer Platt/Getty Images/AFP

ALL stores of a major shopping retailer are to close across Australia within the next few weeks with the loss of 700 permanent jobs after last several ditch sales attempts fell apart.

Toys R Us Australia (TRUA) will wind down its business with every Australian store - totalling about 30 - and the head office and distribution centre at Regents Park in Sydney set to shut down.

Administrators McGrathNicol were appointed one month ago and have failed to either re-sell or recapitalise the business.

“Despite productive discussions, all of the parties have now advised the administrators that they have withdrawn from the sale process,” it said in a statement. “Therefore a going-concern sale will not be achieved and the business will now be wound down.”

The administrators will proceed to liquidate the stock via the store network it said.

TRUA’s online ordering system will close on Friday morning (22 June 2018) with all open online orders to be delivered to customers where goods have been paid for in full and the stock is available.

All accrued employee entitlements will rank as priority claims are expected to be paid in full from proceeds from asset realisations said McGrathNicol with employees from the head office, distribution centre and stores have been briefed today.

There is a sting in the tail for gift card holders however. All gift cards will be honoured until 5 July 2018 McGrathNicol said, provided customers spend an additional equivalent amount in a TRUA store (to use a $100 gift card in full, customers must spend at least an additional $100 in store) but not will not be honoured after 5 July 2018.

Existing lay-by will be honoured until 5 July provided the outstanding balance is paid and the stock is available.

TRUA opened in September 1993 and there are now more than 30 locations nationally, including three in South Australia at Gepps Cross, Noarlunga and Tea Tree Gully.