Seven hundred workers at Toys R Us and Babies R Us stores will lose their jobs within weeks when the embattled retail business shuts down.
Administrators McGrathNicol spoke to employees of the business, which has 44 stores around Australia, on Wednesday to tell them that no buyer has come forward, meaning it will be closed down.
The chain of toys and baby goods stores has been trading since entering voluntary administration in May.
McGrathNicol said stock will now be liquidated through sales at existing stores before they, along with the head office and Sydney-based distribution centre close ‘in coming weeks’.
Toys R Us’s online ordering system will be closed on Friday, June 22, with the administrators saying open online orders will be delivered to customers in cases where they have paid in full and stock is available.
Workers will receive all their entitlements from the proceeds of the liquidation and asset sales, McGrathNicol said.
People holding gift cards for the stores will be able to use them until July 5, provided they spend an additional amount equal to the value of the card, and lay-bys will also be honoured until July 5.
The collapse of the Australian stores follows the failure of the US Toys R Us business in March.
The group’s 885 US stores were slated for closure after it was unable to meet the payments on billions of dollars in debt accumulated since it was bought by a real estate investor and two private equity firms in 2005.