Maplin and Toys R Us separately enter administration in UK

Both retailers are to continue trading for the time being

Maplin and Toys R Us separately enter administration in UK

Picture by: Aaron Chown/PA Wire/PA Images

Two major retailers - Maplin and Toys R Us - have entered administration in the UK.

Electronic retailer Maplin has several stores across Ireland - in Dublin, Cork, Limerick and Galway - while Toys R Us has branches in the North.

It was not immediately clear if or how the Irish Maplin branches will be affected.

British media reports that 2,500 jobs are at risk as a result of Maplin entering administration, while the Toys R Us situation places just over 3,000 jobs at risk.

Maplin, owned by private equity firm Rutland Partners, has called in administrators from PwC.

The chain has 217 stores, and is continuing to trade as efforts continue to find a potential buyer.

Chief executive, Graham Harris, said: "I can confirm this morning that it has not been possible to secure a solvent sale of the business and as a result we now have no alternative but to enter into an administration process.

"During this process Maplin will continue to trade and remains open for business."

He added: "The business has worked hard over recent months to mitigate a combination of impacts from sterling devaluation post Brexit, a weak consumer environment and the withdrawal of credit insurance.

"We believe passionately that Maplin has a place on the high street, and that our trust, credibility and expertise meets a customer need that is not supported elsewhere."

Toys R Us

The toy retailer's UK operation, meanwhile, had been engaged in a frantic search for a buyer for the last month following weak Christmas trading.

Moorfields has been appointed administrator to Toys R Us UK, the UK's largest toy retailer, which is continuing to trade from each of its 105 stores - at least for now.

It said it would continue to accept gift cards already bought and announced that most remaining stock would be on promotion to assist clearance.

Moorfields partner, Simon Thomas, said: "We will be conducting an orderly wind-down of the store portfolio over the coming weeks.

"All stores remain open until further notice and stock will be subject to clearance and special promotions.

"We will make every effort to secure a buyer for all or part of the business."

He added: "Whilst this process is likely to affect many Toys R Us staff, whether some or all of the stores will close remains to be decided."

Toys R Us is struggling internationally, except in Asia. It sought bankruptcy protection in the US and Canada last year.