Last Updated on 2018-03-03 , 4:06 pm
Last Year, Toys ‘R’ Us filed bankruptcy in the US and as of now, the toy retailer’s business in Singapore is safe.
But not for the UK branch.
Toys “R” Us UK will be shutting down soon
On 28 Feb, they announced that they will be closing down with administrators facilitating the process, Channel NewsAsia reported.
Their 105 stores will remain open until further notice, BBC reports.
This could effectively cost 3,200 people to lose their jobs.
Joint administrator Simon Thomas said, “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.”
Well, at least they are not closing their stores haphazardly, but they have decided to close at least 26 stores early this year.
But why is it closing down?
Toy “R” Us UK faced stiff competition from other retail giants such as Amazon.
According to the report by BBC, they are struggling to pay a £15m tax bill due to poor sales.
To mitigate their current predicament, they are looking for potential buyers.
Mr Thomas said: “We will make every effort to secure a buyer for all or part of the business.
The report by Channel NewsAsia mentioned that they have been losing money for seven of the last years and the cost of running out-of-town stores has become
Brexit
This could be one of the reasons as to why they are winding down.
Ever since Brexit, the country’s economic growth has taken a huge hit.
Apart from Toys ‘R’ Us, electrics retailer, Maplin is also facing a similar situation.
“Like many other retailers, Maplin has been hit hard by a slowdown in consumer spending and more expensive imports as the pound has weakened, ” said Zelf Hussain from PWC, administrators for Maplin.
So, Singaporeans, as of now, we are still good. Maybe we should take a trip down to their stores.
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This article was first published on goodyfeed.com
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