Toys R Us has gone into administration five years after the company was saved.
In a statement to the ASX the company said the business has been put into voluntary administration.
Toys R US ANZ has put Luke Andrews and Duncan Clubb from BDO Business Restructuring in charge of the restructure to the toy store.
“As previously announced to the market, the company has been pursuing a recapitalisation plan with the support of its primary stakeholders,” Toys R Us said in the ASX statement.
“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 appointment of the administrators is effective immediately.”
The administrations will take control of the company’s operations and undertake an independent assessment of its affairs.
During this time, the company will continue to operate on a “business as usual” basis where possible.
Toys R Us has no physical stores in Australia and sells to customers online.
The company’s shares have been suspended from the ASX immediately pending further announcements.
