Toys R Us seeks rescue funding as administration looms - ToyNews

Toys R Us seeks rescue funding as administration looms

The retail chain could go into administration by the end of the month if investors are not found to shoulder the £15m VAT tax bill.
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Toys R Us stands on the brink of administration as the taxman has demanded payment of the superstore chain's £15m VAT bill by February 27th.

Now the firm is seeking rescue funding and will work through the weekend to secure pledges from potential investors.

The Entertainer and Alteri Investors, an acquirer of distressed retailers, are understood to have held talks in the last fortnight about buying parts of Toys R Us UK, although their ongoing interest was unclear on Friday and The Entertainer have labelled claims as speculation.

Hilco Capital who stepped in to salvage HMV from administration in 2013, is understood to have tabled a proposal that would involve taking on only a minority of Toys R Us' 105 British outlets.

Hilco is likely to remain interested in a deal only if it is structured as a pre-pack administration, according to a Sky News source close to the process.

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