MSE News: Toys R Us trouble: Here's what you need to know

We are now at the viscous circle of putting a business into administration.

The business struggles and announces it via store closures etc.

Suppliers put cash only orders through, limit payment terms and lower credit limits making it harder to buy goods so they are at less risk.

The business has to put prices up to cope with this as they are likely to be cash poor, especially after the announcement of having to put large quantities of cash into a pension fund.

Customers go elsewhere as it he business is expensive compared to other shops.

The business falls into administration.

I will be very surprised if Toys R Us are still open after they close for Christmas. I just hope if they do go under, they won't announce it until after Christmas Day so shop workers can enjoy their Christmas unlike the poor guys who worked at city link.

Toys R Us is expected to tumble into administration next week after last ditch talks to find a buyer faltered.

The move will put 3,200 jobs at risk and follows the recent decision by its bankrupt American parent to try to sell the loss-making UK business as well its other European stores.

Members of the Toys R Us management team met with officials from the Pension Protection Fund (PPF) on Friday to notify them of the development. The troubled retailer had been trying to drum up a buyer before the end of the month when several payments, including a £15m VAT bill, fall due.

The Guardian

Copied from the toys r us website

Take Time To Pay Agreements
If you have recently settled your Time to Pay agreement and collected your goods, then you are no longer a creditor of the company and nofurther action is needed.

If you have recently settled your Time to Pay agreement and but not collected your goods, then you should collect your goods from store as soon as possible.

If you have not settled your Time to Pay agreement and not collected your goods then you will need to attend your local store by Sunday 11 March 2018 and either:

Pay the balance for the merchandise they have included in their Take Time to Pay Agreement. The price of the merchandise will be the price in store on the day the customer settles the Take Time to Pay Agreement less the deposit that they have already paid; or
Purchase alternative goods that exceed the value of their deposit.
No cash refunds will be issued in respect of deposits paid prior to the company entering Administration

Noticed this. I read this as if someone is in one of these agreements, they can, either pay it off at today's prices and get the item they have been saving for, or alternatively, use their deposit to get goods at today's value.

All Toys R Us stores in the UK will close in the next six weeks following the chain's collapse into administration.

Attempts to find a buyer for the US retailer's 100 stores in the UK have failed.

Twenty five stores have either closed in recent days or are due to shut by Thursday.

The collapse will put more than 3,000 people out of work as a dismal period for the retail sector continues.

BBC News