Toys "R" Us Australia Goes into Voluntary Administration

moo on 21/05/2018 - 19:40
Last edited 22/05/2018 - 09:14 by 2 other users

Toys ’R’ Us Australia has gone into voluntary administration months after the US and UK retail giant’s collapse.

Directors of the company resolved to appoint voluntary administrators McGrathNicol after the withdrawal of the final bidder for the sale of the Australian business, McGrathNicol said in a statement on today.

All Toys R Us Australia stores will remain open and continue to trade while the administrators explore options for the sale of the stand-alone Australian business which operates 44 retail stores across Australia and employs about 700 permanent staff.

Link: https://thewest.com.au/business/toys-r-us-australia-goes-int…

Oh no! What a shame. Seems like the cost of running a brick and mortar business is increasing over time. Soon it will be even harder for kids to get a part time or casual work whilst still studying.

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Comments

  • whooah1979 on 21/05/2018 - 19:43
    -3

    get a job at mcd or hj.

  • garetz on 21/05/2018 - 22:46

    Was just a matter of time. Plus when the others went bankrupt they protested abit too much about them being fine themselves.

  • SydStrand on 21/05/2018 - 23:32
    +2

    Have fond memories of TRU, got most of my childhood toys and consoles there, along with World 4 Kids (RIP). I still buy Lego and the occasional Masterpiece Transformer, but rarely at TRU since their prices just aren't competitive.

    • Butt Scratcher on 23/05/2018 - 22:44

      Same here, used to always go there to play on the consoles there since my parents wouldn't buy me one. Also bought most of my toys there as a kid.

      It's a very unique stores, so it's a shame it won't be around anymore.

  • [Deactivated] on 22/05/2018 - 07:45

    the UK stores closed up last month, apparently there were some awesome bargains to be had.

  • cocomelon on 22/05/2018 - 11:56

    i wonder what will happen to layby items if they gone to administration in the next 3 months. should i just pay it off now to be safe?

    • cloudy on 22/05/2018 - 17:12
      +2

      Don’t give them money unless they give you the product on the spot.

      • cloudy on 22/05/2018 - 22:29

        And check for any issues too, when a company goes into admin all bets are off in terms of support and warranty. Sure manufacturers have responsibility, but it’s usually easier if the retailer is still around. Which this won’t be it seems.

  • moo on 22/05/2018 - 17:48
    +1

    Administrators McGrathNicol said in a statement to news.com.au that gift cards and vouchers would be honoured “provided customers spend an additional equivalent amount” in store.
    “In other words, to use a $100 gift card or voucher in full, customers must spend at least an additional $100 in store,” the statement read.

    Link: http://www.news.com.au/lifestyle/parenting/kids/toys-r-us-cu…

    • doweyy on 22/05/2018 - 17:50

      Wow, is that even legal? I guess it's better than the vouchers being worthless, but still dodgy.

      • Sydgun on 22/05/2018 - 18:39

        Agree… keen to know the legality of this.

      • Olokun on 22/05/2018 - 18:46
        +1

        They don’t have to accept them at all as gift card holders are considered creditors, so this approach is actually a win win of a bad situation. gift card holders get to use the value and administrators get increased cash flow through the business.

        This method was used with Borders when they collapsed
        https://www.smh.com.au/business/double-trouble-for-holders-o…

      • whooah1979 on 22/05/2018 - 19:16

        is that even legal?

        Yes it is. Secured creditors gets the first piece of the pie. Unsecured creditors get whatever it’s left.

        • Sydgun on 22/05/2018 - 19:36

          I suppose customer retention is the least of their worries at this stage of the process

  • sancrumble on 22/05/2018 - 18:56
    Merged from Toys R Us New Gift Card & Voucher Changes

    The Facebook page of Toys r Us and Babies r Us has an announcement about them going into administration and that "Gift cards and vouchers will be honoured provided customers spend an additional equivalent amount in store (in other words, to utilise a $100 gift card or voucher in full, customers must spend at least an additional $100 in store)." Can companies impose such clause on customers having GCs & vouchers that are already paid for? What options do consumers have in such scenario?

    • dom on 22/05/2018 - 19:06

      As administrators have been appointed they could simply not honour them and all gift card holders would be treated as unsecured creditors. They then might receive a couple of cents in the dollar at the conclusion of liquidation if it gets to that point.

      They’re actually being nicer than they have to be.

      • cocomelon on 24/05/2018 - 10:18

        worst either way

    • kwijybo on 22/05/2018 - 19:07

      What options do consumers have in such scenario?

      Spend the money or lose value of the gift card. Customers can consider themselves lucky they didn't just cut off gift cards like many others have done when going into administration.

      • cloudy on 22/05/2018 - 21:07

        i guess its "lucky" but the intent is making you spend more so they can get more cash. Not really out of good will or anything

  • Laziofogna on 24/05/2018 - 20:30
    +1

    It was about time. High prices and bad service.

  • ScoMosas on 20/06/2018 - 19:39

    They are now closing Australian operations .. sad for those 700 employees who are going to lose their jobs

  • djprima on 20/06/2018 - 20:11

    So, any bargain yet? Guess we'll see tomorrow

  • Dr Prepper on 21/06/2018 - 18:03

    прощальный привет, Toys "R" Us

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