A £15m VAT bill could force troubled retailer Toys R Us into administration by the end of the month – throwing 3,000 people out of work – unless a rescue deal is found.
The UK arm of the giant US company, which went into Chapter 11 bankruptcy proceedings last year, has been struggling to find new investors.
Several firms have expressed an interest in buying part of the chain’s business, according to Sky News, including The Entertainer, the UK's largest independent toy retailer, which has 144 stores.
Two private investment companies, Alteri Investors and Hilco Capital, are also involved in talks, according to the report.
Hilco bought the failing music retailer HMV in 2013, but is understood to only be interested if Toys R Us goes into a ‘prepack’ adminstration, which allows the sale of an insolvent business without affecting its day-to-day trading operations.