Toys 'R' Us Australia has collapsed into administration

• Toys ‘R’ Us Australia has appointed voluntary administrators, with an uncertain future for 700 staff and 44 stores nationwide.
• It follows the collapse the franchise in the US and other countries.

Toys ‘R’ Us Australia has gone into administration, putting 700 jobs in 44 stores around the country at risk, after a plan to sell the company fell apart.

It follows the collapse of the Toys ‘R’ Us chain in the US, where the company filed for bankruptcy protection in March and started the the process of closing its 735 stores across America.

Toys ‘R’ Us follows a string of other high-profile Australian retailers in going to the wall over recent years, with well-known brands like Pumpkin Patch, Payless Shoes, and Herringbone succumbing to the relentless margin pressures in Australian retail, which has been affected by high rents and weak levels of household spending growth.

The board of Toys ‘R’ Us Australia (TRUA) has appointed McGrath Nicol as voluntary administrator after the final bidder in a sale process withdrew. Its subsidiary Babies ‘R’ Us is also in administration. Read more

Paul Colgan - Business Insider Australia - 22 May 2018