LONDON (AA) – Two major British retailers have gone into administration, putting 5,500 jobs at risk in the U.K.
Administrators were appointed for both Toys R Us UK and electronics retailer Maplin on Wednesday, according to company statements.
In administration, when a company fails to manage its own accounts (such as revenues, expenses, and taxes), the government takes over the accounts to look at what is going on, in a process that generally ends in bankruptcy.
Following the failure of Britain's biggest toy retailer to find a buyer, administrators have been appointed for the company, which currently has 105 stores in the U.K.
“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, ” said joint administrator Simon Thomas, speaking to the BBC.
Toys R Us UK currently employs 3,000 in the U.K.
Maplin also announced that the company has gone into administration due to financial woes.
It currently employs around 2,500 people in the U.K.
“The business has worked hard over recent months to mitigate a combination of impacts from sterling devaluation post-Brexit, a weak consumer environment, and the withdrawal of credit insurance,” Maplin CEO Graham Harris said in a company statement.
