Suppliers have reportedly stopped toy deliveries to the UK arm of Toys R Us amid concerns the financial state of its US parent company could adversely impact their business.
According to The Sunday Telegraph, a small group of suppliers have stopped deliveries to the toy chain despite Toys R Us insisting its UK division was “business as usual”.
Sources told The Telegraph that Worlds Apart, stopped supplying Toys R Us because it could not obtain credit insurance while nursery furniture brand Tutti Bambini said they were concerns about the financial future of the retailer.
Toys R Us currently lists both companies’ products as “unavailable” despite them being available at other retail chains.
While a spokesman from the toy chain said Worlds Apart and Tutti Bambini were not supplying at the moment, he said “the overwhelming majority of our vendors are back online and shipping and we continue to work through the small number of others to ensure that our customers can shop with confidence”.
In the US, Toys R Us filed for bankruptcy protection last month after it amassed a $5.6 billion (£3.6 billion) debt bill which required $400 million annual interest payments.
Over half of this sum ($3 billion) has been secured by lenders in order to keep stores open during the holiday season.
It is also meant to guarantee suppliers in the US will be paid in full for their Christmas stock.
In the UK, Toys R Us has 110 shops and employees 2500 staff.
Despite the troubles facing its US parent, the UK arm said it still planned to open four new shops in the UK this year.