Although the final straw for the company was a £15m VAT bill the writing had been on the wall for some time as the company struggled with finances and attempts to sell the company were unsuccessful. However, the business has been criticised by some for pricing stock too highly compared to similar items on the market.
Another key reason for the stores closing and the the decline in sales was competition from online companies such as Amazon and others. The fact that less customers go to a physical store for goods as more people shop online than ever before was also a contributory factor.
So far a third of branches have shut down and others will be closing in the future. However, the bonus for customers is that there are bargains to be had with big discounts in the remaining stores, and gift cards and vouchers will still be honoured in stores subject to conditions.
Moorfields Advisory were appointed in February 2018 to undertake the closures after the bid to sell the firm had failed. This was partly due to the complexities of how the company is run with a number of subsidiaries and the difficulties that a buyer would have in acquiring the rights to use the company name held by the U.S. parent business.
For many the closure of Toys R Us will be the end of an era representing an iconic name and brand in the UK retail industry.
News in the same category
It took a long time, but the information is now confirmed: Waitrose is due to open its first store in Leatherhead in 2016.
Selfridges in London will soon be opening its very own cinema. Their flagship store on Oxford Street will host the cinema, which will give shoppers the chance to catch up on the latest releases whilst also picking up the items that they need.
Vegan food come into it’s own in the East London district in the form of a new supermarket based at Homerton and named the Plant Based Supermarket which sells 100% vegan products.
As of April 2017, M&S had 979 stores throughout the UK. Considering the fact that this massive conglomerate was first established in 1884, many consumers will be surprised to learn that they are planning to close no fewer than 100 stores by the year 2022.
