The UK arm of Toys R Us has gone into administration, putting 3,000 jobs at risk.
The toy retailer had been seeking out a buyer to take over the company over the last few weeks, prior to announcing the decision on Wednesday.
The move into liquidation came after the UK arm of the company racked up a large VAT tax bill, amassing debts of around £15 million.
Moreover, weak trading over the usually lucrative Christmas period continued to place pressure upon the struggling chain, which had once been one of the countries most loved children’s retailer.
Nevertheless, the company had been struggling for some time, recording losses for seven out of the past eight years.
Administrator Moorfields has been chosen to oversee an orderly wind-down of the company’s store portfolio, although the firm affirmed it is still seeking a buyer.
Simon Thomas, Moorfields partner, commented: “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.
“We will make every effort to secure a buyer for all or part of the business.”
The administration is set to impact its 105 stores around the UK, putting thousands of jobs at risk.
Toys R Us in the US and Canada filed for bankruptcy last year after racking up debts of up to $5 billion (£3.7 billion).
The store has struggled in light of changing consumer trends, and the shift towards digital, electronic and online retailers such as Amazon (NASDAQ:AMZN), which has continued to outperform its competitors in recent years.
Elsewhere on the high street, reports have suggested that electronics retailer Maplins may follow suit, as it also searches for a buyer.
Should it fail to do so, around 2,500 jobs across the UK may be at risk.