Two big name high street retailers entered Administration in February: On 28 February, Toys R Us, whose financial struggles had been attracting media attention (not least from Ashfords' Restructuring & Insolvency Bulletin) since before Christmas, finally threw in the towel and appointed Administrators from Moorfields; while electrical goods firm Maplin also appointed PwC on the same day.
Both firms have sizeable debts and will likely leave creditors severely out of pocket. Toys R Us is estimated to owe around £664 million to financial institutions and banks, while other creditors, such as suppliers and landlords, are owed many millions more. It is estimated their liability deficit could exceed £1 billion. Maplin's creditors have yet to be finalised.
Ashfords Take: Another dark month for the high street, which continues to face stiff competition from online retailers and rising staff and premises costs.