Toys R Us is poised to tumble into administration this week after failing in its eleventh-hour hunt for a buyer.
The process is expected to be triggered on Tuesday, with corporate recovery firm Moorfields already being lined up to handle the administration, according to Sky News.
The Pension Protection Fund (PPF), Toys R Us’ biggest unsecured creditor, was notified last week of the impending insolvency.
Toys R Us had been urgently seeking investment in order to pay off a £15m VAT bill. The lack of a cash injection has left up to 3,200 jobs at more than 100 UK stores at risk.
The news comes amid reports that the European arm of the business is also seeking a buyer, in a bid to avoid the same fate as its UK counterpart.
Advisors of the struggling retailer have instructed potential EU buyers to submit bids by the close of business on Monday.
On the continent, Toys R Us trades from 230 stores in 10 European markets, including Austria, France, Germany and Spain.
It is unclear whether the European arm will face a similar path to insolvency if a sale is not agreed soon.