Two high street stores have announced today that they have gone into administration, potentially putting dozens of jobs in the city at risk.
Toys R Us at the Goldstone Retail Park, Hove, and Maplin, in London Road, Brighton, are both at risk from their parent companies calling in the administrators.
Both have been struggling to find themselves a buyer to dig themselves out of a financial hole. Toys R Us was given an extra three months to find a new owner before Christmas but administrators today said this had been unsuccessful.
It’s reported that Maplin faces a £15 million VAT bill next month and that talks with retailer Philip Day, who owns Edinburgh Woollen Mill, Peacocks, Jaeger and Austin Reed, broke down yesterday afternoon.
Toys R Us administrators Simon Thomas and Arron Kendall, from Moorfields, said that although the company is in administration, all of its stores will continue trading until further notice and much of the stock will be subject to clearance discounts and other special promotions.
Mr 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’re encouraging customers to redeem their gift cards and vouchers as soon as possible.
“We will make every effort to secure a buyer for all or part of the business. The newer, smaller, more interactive stores in the portfolio have been outperforming the older warehouse-style stores that were opened in the 1980s and 1990s.
“While this process is likely to affect many Toys R Us staff, whether some or all of the stores will close remains to be decided.
”We have informed employees about the process this morning and will continue to keep them updated on developments. We are grateful for the commitment and hard work of employees as the business continues to trade.”
It’s Maplin, not Maplin’s.
Thanks, Alex. That’s now corrected.
Toys R Us in Hove will definitely be closing.
When the CVA was arranged last year asking landlords to slash their rent, the landlords were given a 45 day notice to evict should they not want to agree to rent reductions. Hove site landlord gave Toys R Us notice around two weeks ago which is why there is hardly any stock in the shop as it was moved to the online store plus one other store.
Brighton/Hove was the sixth best profit making store in the country where improvements could have made it even better. Shame senior management refused to listen to staff & customers & make necessary changes throughout the chain, because staff have lost their jobs. All were on short term contracts so redundancy will not be given to all. The store could still have ‘millions under one roof’ if only the company made changes to keep up with the 21st century.