Latest news with #LukeAndrews
The Age
05-06-2025
- Business
- The Age
Toys ‘R' Bust: Once-popular toy retailer collapses for a second time
Toys 'R' Us Australia and New Zealand has been suspended from the Australian stock exchange after handing itself over to administrators for the second time as buyers are sought for the collapsed business. The toy retailer, which switched to an online-only model after appointing administrators in 2018, had been trying to restructure its balance sheet but could not find a viable way forward. '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,' Toys 'R' Us said in an ASX statement on Thursday. BDO restructuring partners Luke Andrews and Duncan Clubb have been appointed administrators and have taken control of the business, which will continue operating as usual 'where possible' while they look to restructure or sell the business. Toys 'R' Us slid into a trading halt on Wednesday morning, and was suspended from the ASX immediately after announcing the appointment of administrators. 'ASX has determined that [Toys 'R' Us]'s financial condition is not enough to warrant the continued quotation of its securities,' the ASX Compliance team said in a statement. Toys 'R' Us appointed McGrathNicol as administrators in May 2018, two months after its US parent company said it would shut all 735 stores in the US, where it is headquartered, after going bankrupt in September the year before and failing to restructure billions of dollars of debt. Prospective buyers of the Australian business ultimately withdrew from the sale process, leading to the loss of 700 staff jobs and the closure of 44 stores.
Sydney Morning Herald
05-06-2025
- Business
- Sydney Morning Herald
Toys ‘R' Bust: Once-popular toy retailer collapses for a second time
Toys 'R' Us Australia and New Zealand has been suspended from the Australian stock exchange after handing itself over to administrators for the second time as buyers are sought for the collapsed business. The toy retailer, which switched to an online-only model after appointing administrators in 2018, had been trying to restructure its balance sheet but could not find a viable way forward. '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,' Toys 'R' Us said in an ASX statement on Thursday. BDO restructuring partners Luke Andrews and Duncan Clubb have been appointed administrators and have taken control of the business, which will continue operating as usual 'where possible' while they look to restructure or sell the business. Toys 'R' Us slid into a trading halt on Wednesday morning, and was suspended from the ASX immediately after announcing the appointment of administrators. 'ASX has determined that [Toys 'R' Us]'s financial condition is not enough to warrant the continued quotation of its securities,' the ASX Compliance team said in a statement. Toys 'R' Us appointed McGrathNicol as administrators in May 2018, two months after its US parent company said it would shut all 735 stores in the US, where it is headquartered, after going bankrupt in September the year before and failing to restructure billions of dollars of debt. Prospective buyers of the Australian business ultimately withdrew from the sale process, leading to the loss of 700 staff jobs and the closure of 44 stores.
Sky News AU
05-06-2025
- Business
- Sky News AU
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.
Perth Now
05-06-2025
- Business
- Perth Now
Playtime's over: Toys R Us collapses again
Toys R Us has collapsed into administration amid desperate recaptialisation efforts to right the beleaguered retailer. Luke Andrews and Duncan Clubb of BDO Business Restructuring were called in on Thursday — just a few months after the shock resignation of Toys R Us' chief executive Penny Cox and a warning from the company's auditor that it risked running out of money over a near $13 million gap between what it owed and the value of its assets. The business had a market capitalisation of just $4.1m before it went under. 'As previously announced to the market, the company has been pursuing a recapitalisation plan with the support of its primary stakeholders,' it said in a statement to the Australian Securities Exchange. '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.' A quarterly financial report released last week showed Toys R Us had just $211,000 in cash and cash equivalents at the end of March, down from $579,000 at the end of the previous quarter. Toys R Us filed for bankruptcy in 2018 and closed 44 Australia stores with the loss of about 700 staff. It re-launched as an online-only retailer in late 2019 after reaching a deal with Hobby Warehouse. In 2021, it was bought by ASX-listed retailer Funtastic, which changed its name to Toys R Us the same year. But it has struggled to return to its glory days and has found it increasingly difficult to lure shoppers away from bigger rivals like Kmart and online platforms Amazon, Shein and Temu An update to the market last Friday said its primary debt holder had been supporting the business with short-term cash requirements and working with the board while it firmed up a recapitalisation plan. It also reported revenues of $863,000 in the three months to the end of April — slightly up from the $779,000 a year earlier — with a substantially higher product margin of 39 per cent. Toys R Us said it would continue to operate as usual 'where possible' as administrators dive into its financial affairs and explore options for a restructure or sale. 'The primary stakeholders have indicated that they will work with the Administrators on any restructuring proposal that may be put to creditors,' it said.
West Australian
05-06-2025
- Business
- West Australian
Toys R Us has gone into voluntary administration for second time in Australia
The publicly listed Toys R Us, which was saved five years ago from going bust, has again gone into administration. In a statement made to the ASX, Toys R Us ANZ said the business had been put into voluntary administration, with BDO's Luke Andrews and Duncan Clubb being put in charge of helping to restructure the previously beloved toy store. 'As previously announced to the market, the company has been pursuing a recapitalisation plan with the support of its primary stakeholders. However, the company is no longer in a position to pursue a solvent recapitalisation plan,' Toys R Us said. '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 appointment of the administrators is effective immediately.' Toys R Us shares have immediately suspended from trading on the ASX pending further announcements. The board of directors said they acknowledged the support of employees, customers and shareholders during this challenging time. This is the second time the company has been placed in administration in Australia in the last five years. In 2020, the then listed ASX Funtastic retailer was reinvented as a hobby, toys and baby-goods business. As part of this restructure and capital raising, through a reverse takeover, Funtastic acquired the Australian e-commerce website for Toys R Us, Babies R US and Mittonit. This is just the latest chapter for Toys R Us, which was previously a stand-alone iconic name in global toy sales before the chain collapsed in 2017.
