Beloved children's retailer Toys 'R' Us collapses for second time in Australia after entering voluntary administration
Popular children's retailer Toys 'R' Us has collapsed in Australia after entering voluntary administration for a second time.
The publicly-listed company, trading as Toys 'R' Us ANZ Limited, made the announcement to the ASX on Thursday.
Toys confirmed its board of directors has appointed Luke Andrews and Duncan Clubb from BDO Business Restructuring as administrators, effectively immediately.
"As previously announced to the market, the company has been pursuing a recapitalisation plan with the support of its primary stakeholders," a statement read.
"However, the company is no longer in a position to pursue a solvent recapitalisation plan.
"In light of these events, the board has determined that the company is, or is likely to become, insolvent and that the appointment of an administrator is in the best interests of the company."
The kids company previously faced the prospect of shutting up shop when it entered voluntary administration in 2017 but was saved by fellow toy retailer Funtastic, which later rebranded to Toys 'R' Us ANZ.
Toys confirmed the administrators will take control of the retailer's operations, which will include an "independent assessment of its affairs".
"During this period, the company will continue to operate on a 'business as usual' basis where possible, while the administrators explore options for restructuring or sale," a statement read.
"The primary stakeholders have indicated that they will work with the administrators on any restructuring proposal that may be put to creditors."
The first creditors meeting is set to be held within eight business days.
"The board acknowledges the support of its employees, customers, and shareholders during this challenging time," Toys said.
The development comes after Toys requested a trading halt on Wednesday.
Toys 'R' Us has 1,350 stores around the world across 31 countries, opening the first Australian shop front in 1993.
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