Toys R Us has gone into administration, leaving the Pension Protection Fund facing a £37million bill.

Britain’s largest speciality toy retailer has 105 stores and 3,200 employees in the UK, including Basildon.

The company was saved from collapse just weeks before Christmas, has been scrambling to find £15million to fund a VAT bill due to the taxman, But sales over the festive period struggled, leaving the company in even a worse state. 

Administrator Moorfields has been appointed to conduct what it called an orderly wind-down of the company's store portfolio, although the firm insisted it is still seeking a buyer.

Simon Thomas, Moorfields partner, 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."

All stores will continue trading until further notice and much of the stock will be subject to clearance discounts and other special promotions, Moorfields confirmed.

"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.

"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," Mr Thomas added.

Gift cards and vouchers will be honoured while the stores continue to trade, but customers are being encouraged to redeem vouchers as soon as possible as stores may be subject to closure without notice.

No further gift cards will be sold from Wednesday.

The Daily Mail also says 2,500 jobs hang in the balance at consumer electronics chain Maplin, which began in south Essex.

Talks with the owner of Edinburgh Woollen Mill over a possible rescue deal are said to have broken down.

Echo:

Maplin Electronic Supplies was established in 1972 as a small mail order business by Roger and Sandra Allen and Doug Simmons. The company originally started in a bedroom at the Allens' home in Rayleigh, Essex, after the two electronics enthusiasts were disappointed by the complexity and poor availability of existing electronic component suppliers.

The trio placed a small advertisement in an electronics magazine, after printing the company's first 28-page catalogue, which would be offered free to callers. Despite a slow start and dwindling profit in the first year, the company began to create a reputation for offering first grade electronic components that are delivered exactly as shown in the catalogue by first class post.

The first store opened in Westcliff-on-Sea; the mail order department business moved into the spare rooms above the shop. Sales received a large boost when Maplin was invited to take prime advertising space in IPC Electronics magazines after the latter received a large number of complaints against some of their existing advertisers.

A second store opened in Hammersmith by the end of the year. The mail order side of the business had outgrown the space available above the Westcliff-on-Sea store and a large ex-dairy building a few miles away in Hadleigh was purchased and was soon established as Maplin's first warehouse. (Source: Wikipedia)