Toy suppliers have stopped deliveries to the UK arm of Toys R Us over fears the financial struggles of its American company could leave them out of pocket.
Despite the retailer insisting last month that it was ‘business as usual’ for its UK operation, a report from the Sunday Telegraph has revealed that a slew of suppliers have cut off the chain ahead of the Christmas trading season.
According to a Toys R Us spokesman, Worlds Apart and Tutti Bambini were ‘part of a small number of vendors currently not supplying’ the retailer.
However, the spokesman added that “the overwhelming majority of our vendors are back online and shipping and we continue to work through the small numbers of others to ensure that our customers can shop with confidence.”
The business still plans to open four new shops in the UK this year.
Toys R Us filed for bankruptcy protection in the US last month after suffering from its $5bn debt, which required $400m annual interest payments.
The retailer is continuing to operate in bankruptcy protection due to a $3bn financing facility, which is meant to guarantee suppliers they will be paid in full for their Christmas stock.