The U.K. arm of Toys R Us went into administration Feb. 28 after a protracted search for a buyer was unsuccessful.
Moorfields Advisory Ltd., a U.K. independent firm of restructuring and insolvency specialists, said it had been appointed as administrator for the retailer, adding that it would conduct "an orderly wind-down of the store portfolio over the coming weeks."
Toys R Us U.K. operates 105 stores and employs about 3,000 staff.
"Whilst this process is likely to affect many Toys R Us staff, whether some or all of the stores will close remains to be decided," Simon Thomas, joint administrator and a partner at Moorfields, said in a statement. He noted that employees have been informed of the matter and would be updated about further developments.
All Toys R Us stores in the U.K. will continue to trade until further notice, and much of its stock will be subject to clearance discounts and other special promotions.
U.S. parent company Toys R Us filed for Chapter 11 bankruptcy protection in September 2017 as it explored options to restructure its debt. It has $5 billion of debt maturing in 2018.
