Toys R Us Inc.'s Australian unit has gone into voluntary administration.
According to a May 21 news release, directors of the company resolved to appoint McGrathNicol Ltd. partners Jason Preston, Keith Crawford and Barry Kogan as voluntary administrators after the final bidder in the sale of the Australian business withdrew.
The development follows Toys R Us' collapse in the U.K. in February, months after the New Jersey-based toy retailer filed for bankruptcy protection in September 2017.
In March, Toys R Us announced it will either close or sell all of its U.S. stores and shut all of its U.K. stores.
Meanwhile, Fairfax Financial Holdings Ltd. in April lodged a $300 million bid to acquire the company's 82 stores in Canada. In Europe, Irish toy retailer Smyths Toys Superstores agreed to acquire Toys R Us' operations in Germany, Austria and Switzerland for a headline enterprise value of €80 million.
The company has also received multiple offers of more than $1 billion for 85% of its Asia business.
Toys R Us Australia said stores will operate as usual until further notice, but noted that there will be a number of policy changes due to its financial circumstances.
