Embattled toy retailer Toys R Us UK has edged closer to complete collapse with administrators poised to take control as early as Tuesday.
Sources revealed on Friday that the retailer’s frantic attempts to secure a buyer before the deadline for a £15 million VAT tax bill was due on Tuesday had failed, with a potential investor walking away at the last minute.
According to Sky News, insolvency specialist firm Moorfields will take over the retailer’s operations if and when it collapses.
This follows calls from the Pension Protection Fund (PPF), which stands to become its largest unsecured creditor, to appoint a different administrator after stating it was “uncomfortable” with Alvarez & Marshal (A&M) handling its assets if Toys R Us UK should collapse.
A&M were responsible for securing the last-minute company voluntary agreement (CVA) which prevented Toys R Us UK from falling under just days before Christmas.
Due to its role in securing the CVA, the PPF would reportedly favour another administrator.
Should Toys R Us enter administration, 3000 staff members across 286 stores would be made redundant.