Popular children’s toy retailer Toys R Us ANZ has entered voluntary administration for the second time.
“As previously announced to the market, the company has been pursuing a recapitalisation plan with the support of its primary stakeholders. However, the company is no longer in a position to pursue a solvent recapitalisation plan,” the company said in an ASX filing on Thursday.
“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.”
Its securities have been suspended from trading on the ASX, pending further announcements.
Voluntary administrators Luke Andrews and Duncan Clubb of BDO Business Restructuring Pty Ltd will take control of the company and will undertake an independent assessment of its affairs.
While the administrators explore options for restructuring or sale, Toys R Us will continue to operate on a “business as usual” basis where possible.
The company noted that its primary stakeholders said that they will work with the administrators on any restructuring proposal.
The first meeting of creditors is expected to be held within eight days.