Inside Stories

Toys R Us and Maplin edging close to the bankruptcy

According to reports by the international broadcaster UK-based chains Toys R Us and Maplin are going through the wobbly patch as they need big shakeup to survive and to retain their more than 5000 jobs.

Insider said that both chains have recently failed to complete a Rescue deal as they are keeping administration on the edge.

Apparently Maplin have been trying to sell their business but they have reportedly failed to close the deal. Similar was the case for Toys R Us, who are not getting any reasonable suitors.

Late last year Toys R Us filed for bankruptcy protection, and is facing a looming close date for a £15m VAT bill which is almost impossible to be paid until unless sale  is completed.

Reports said that giant toymaker has been reporting loss for seven out of the past eight years of trading and the company has highlighted its concerns on its “warehouse-style stores”.

Somehow the toymaker firm had managed to stave off fall down couple of months ago by getting a rescue plan for operational reshuffle, that shakeup comprised closure of almost 26 stores planned for this Spring.

However that didn’t help the company to perk up its sales and now it might have to look out for what may be an unlikely buyer to save itself.

Maplin which is ownership of Rutland Partners was rumored  to be a takeover target of Edinburgh Woolen Mill, the clothing company that owns Peacocks, Country Casuals and several other retailers. But later reported that the deal collapsed, which means that bankruptcy is presumably a possible outcome for the firm.

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