Around 5700 jobs are on the brink of being lost today with both Maplin and Toys R Us UK poised to call in administrators, as negotiations to find buyers for both retailers break down at the last minute.
Yesterday it was reported that electronics retailer Maplin was in talks with the Edinburgh Woollen Mill (EWM) Group to secure a rescue deal before a deadline to pay tens of millions in liabilities by the end of the month.
According to Sky News, these negotiations broke down at the eleventh hour and EWM walked away from the potential rescue deal.
It is understood the two companies disagreed over the future involvement of Maplin’s current owner Rutland.
Unless another rescue deal is made today, administrators will be appointed on Wednesday.
Meanwhile, Toys R Us UK has also failed to find a buyer before a £15 million VAT debt bill is due to be paid today.
Administrators are now poised to take control of the UK arm of the US toy retailer, potentially plunging 3200 staff into redundancy.
Should the collapse be confirmed later today, the Pensions Protection Fund (PPF) will be lumped with a £37 million pensions black hole.
This comes after weeks of scrambling to find a buyer after a company voluntary agreement (CVA) was secured just days before Christmas, narrowly avoiding collapse.