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Toys R Us UK goes into administration

Toys R Us going bust: what this means for returns, gift cards and faulty goods

Toys R Us UK has gone into administration today, with efforts still being made to secure a buyer for all or part of the business.

All Toys R Us stores in the UK are expected to close by the end of April following the chain’s collapse into administration. It is thought that the closures will result in more than 3,000 redundancies.

Corporate recovery specialist Moorfields has been appointed to wind down the UK toy retailer.

Electronics retailer Maplin had also put its business up for sale, but talks with a potential buyer are understood to have broken down. Toys R Us and Maplin are the latest of a string of well-known high street retailers to run into financial problems in recent months.

The majority of Toys R Us UK creditors agreed to its plan to restructure its finances back in December 2017 in an attempt to save it from collapse.

 

Your rights when a company goes into administration

Which? managing director of home products and services Alex Neill said: ‘It’s a worrying time for everyone when a company goes into administration, but for customers it’s important to remember that your consumer rights may be affected.

‘If you have recently bought anything from Toys R Us, you may not be able to claim a refund or exchange the item if they cease trading. If you have Toys R Us gift vouchers you should try to spend these in store as soon as possible.

‘If you’re planning to shop in Toys R Us and intend to buy something worth more than £100, make sure you use a credit card as you’ll be able to make a claim against your credit card company under section 75 Consumer Credit Act if anything goes wrong.’

If you want a return or exchange a Toys R Us toy

Getting a return or exchange depends on what the administrator who takes over the company decides to do. If a company is in administration, it’s the appointed administrator’s job to save the company money. As a result, it may decide not to accept product returns.

If there’s nothing wrong with the item, you may not be able to return it. But if you don’t submit a claim in writing to the administrators, then you definitely won’t have any chance of getting your money back. We think it’s worth at least trying.

If your Toys R Us goods are faulty

If the retailer goes bust and the goods you have from them are faulty, you may have a manufacturer’s or other third-party warranty that’s still valid. Check your documentation to see whether this is the case, as this may help you to get a replacement, repair or refund.

If you’ve been supplied with faulty goods and the company is placed into administration but is still trading, you may be able to get a replacement or a refund for your item in the normal way, under the Consumer Rights Act.

If you paid for items worth less than £100 on a credit or debit card, you may be able to claim your money back under chargeback. If it’s worth more than £100 and you paid on a credit card, you can claim the money back with your card company under section 75 of the Consumer Credit Act.

If you still have Toys R Us gift vouchers to spend

A number of high street stores have refused to allow customers to use vouchers or gift cards once they had gone into administration even though they had already accepted money for them.

This is because administrators see customers with vouchers and gift cards as creditors. However, it’s still worth making a claim in writing to the administrators with proof of your vouchers or gift cards.

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