Toys 'R' Us has announced plans to close its remaining 100 United Kingdom stores, according to BBC. The decision came after the U.S.-based company failed to find a buyer for its U.K. operations while staring down a £15 million ($20,934,450m) VAT tax bill from the U.K. government and total debt of £300m ($418,689,000m).
According to Toys 'R' Us account administrator Simon Thomas, the sale simply presented too many obstacles to potential buyers.
"Any potential purchaser would have difficulty in sorting things out, for instance getting the rights to use the name, which is held by the American parent," he explained. "In addition there are many services provided within the group by different subsidiaries, so if you take over one part you have to make alternative arrangements or negotiate new terms. Put all that together and becomes very complicated."
25 stores will close this week, with the other 75 to follow. The move will reportedly put as many as 3,000 people out of work.
The toy retailer has recently been in financial distress, having closed the bulk of its American stores earlier this year.