Toys R Us has gone into administration five years after the company was saved.
In a statement to the ASX the company said the business has been put into voluntary administration.
Toys R US ANZ has put Luke Andrews and Duncan Clubb from BDO Business Restructuring in charge of the restructure to the toy store.
“As we have already informed the market, the company is actively working on a recapitalization strategy with backing from its main stakeholders,” Toys R Us mentioned in the ASX release.
“However, the company is no longer in a position to pursue a solvent recapitalisation plan.
“Considering the current circumstances, the board has concluded that the company is either insolvent or on the verge of insolvency, and thus, appointing an administrator is deemed to be in the company’s best interest.”
“The appointment of the administrators is effective immediately.”
The administrations will take control of the company’s operations and undertake an independent assessment of its affairs.
During this time, the company will continue to operate on a “business as usual” basis where possible.
Toys R Us has no physical stores in Australia and sells to customers online.
The company’s shares have been suspended from the ASX immediately pending further announcements.
