Toys ‘R’ Us has collapsed into administration putting 3,200 jobs at risk, including staff at five stores in South Yorkshire.
Administrators were called in after unsuccesfful attempts to sell it as a going concern.
They will now conduct an ‘orderly wind down’ of the UK business, which has more than 100 stores.
All will continue to trade until further notice, and stock will be discounted.
The firm, which has been in the UK since 1985, was put up for sale earlier this month after losing money for the last seven years.
Simon Thomas, joint administrator at Moorfields, said: “We will be conducting an orderly wind-down of the store portfolio over the coming weeks.
“We will make every effort to secure a buyer for all or part of the business. The newer, smaller, more interactive stores in the portfolio have been outperforming the older warehouse-style stores that were opened in the 1980’s and 1990’s.
“Whilst this process is likely to affect many Toys R Us staff, whether some or all of the stores will close remains to be decided. We have informed employees. We are grateful for their commitment as the business continues to trade.”