The buying group has been struggling to find suitable credit insurance over the last few weeks and its future has been hanging in the balance for a few days.
KPMG has been appointed as the receiver of both Youngsters and Toyzone.
Toyzone Ltd (in administration) operates 20 retail outlets and employs 200 members of staff. Following the appointment, all 20 stores will continue to trade while the administrators seek a buyer for the stores either as chain or as individual outlets.
David Crawshaw, KPMG Restructuring partner, said: “Unfortunately, conditions in the sector over the Christmas period, which is traditionally the peak time for toy retailers, were tougher than expected resulting in increased cash flow pressure which the companies could no longer sustain. We are now reviewing options for both parts of the group and hope to secure a buyer for its business and assets.”