Toys and clothing retailer Toys R Us ANZ has gone into voluntary administration and has appointed Luke Andrews and Duncan Clubb of BDO Business Restructuring as its administrators, effective immediately. 

This comes after the company posted its first-half sales of A$3.1 million compared to A$5.9 million during the same period last year.

Since having previously entered into administration in 2018, the company shifted to an online-only model.

Although the company had been pursuing a recapitalisation with its primary stakeholders, it believes that Toys R Us is no longer in a position to pursue a solvent recapitalisation plan. 

“In light of these events, the board has determined that the company is, or is likely to become, insolvent and that the appointment of an administrator is in the best interests of the company,” the company said. 

Toys R Us, previously Funtastic, will continue to operate on a ‘business as usual’ basis while the administrators take control of the company’s operations while they assess its assets. 

The organisation’s securities will also be suspended from trading on the ASX immediately.