Toys R Us has gone into administration putting scores of Sheffield jobs at risk.
Moorfields has been appointed to begin 'an orderly wind-down' of the UK's biggest toy retailer, which has four stores across South Yorkshire and employs more than 3000 people across the UK.
The firm has been in trouble for some time, fighting to pay off a £15million VAT bill thanks to poor sales.
The corporate recovery specialist said that all stores would remain open until further notice and the firm insisted it is still seeking a buyer.
But the long term future of the shops - including those at Carbrook, Crystal Peaks, White Rose Way, Doncaster, and at the Frenchgate Centre in Doncaster - remains uncertain.
Simon Thomas, Moorfields partner, said: "We will be conducting an orderly wind-down of the store portfolio over the coming weeks.
"All stores remain open until further notice and stock will be subject to clearance and special promotions.
"We're encouraging customers to redeem their gift cards and vouchers as soon as possible.
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"We will make every effort to secure a buyer for all or part of the business."
Much of the stock will now be subject to clearance discounts and other special promotions.
Mr Thomas added: "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 about the process this morning and will continue to keep them updated on developments. We are grateful for the commitment and hard work of employees as the business continues to trade."
Gift cards and vouchers will be honoured while the stores continue to trade, but customers are being encouraged to redeem vouchers as soon as possible as stores may be subject to closure without notice.
No further gift cards will be sold from Wednesday.