Companies with stores in Chesterfield collapse into administration

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The future of 5,500 jobs was hanging in the balance on Wednesday following the collapse of two major retailers in Toys R Us UK and Maplin.

According to PwC, which is still attempting to find a buyer for the group, there are 82 people in employment across the six stores here.

Maplin operates out of 217 stores across Britain and Ireland, employing close to 2,500 staff. Mothercare, which sells maternity and baby products, saw its shares plunge 10% in London trading.

The troubled toy company, which has 11 stores in Scotland, had faced an underfunded pension scheme.

Toys R Us, which was founded in 1948, has historically been one of the biggest toy retailers in the UK.

Simon Thomas, Moorfields partner and joint administrator, said: "All stores remain open until further notice and stock will be subject to clearance and special promotions".

After failing to find a buyer, the liquidation process for Toys R Us' United Kingdom unit has begun.

Customers will no longer be able to order goods online or use the "click and collect" facility and are therefore are encouraged to go to the store where heavy discounts are likely.

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It's unclear how many stores or jobs, if any, will be saved. Moorfields said the appointment of administrators to run the United Kingdom business would not affect stores in other countries. Most toys are now bought in supermarkets, apparently, or online.

"National governments, including the United Kingdom, have dramatically favoured the new e-businesses and have let regional or national retail chains die". A deal could give give the Toys R Us Asia unit a valuation of $1 billion or higher, a source told Bloomberg.

During administration, the directors will work out how to pay the creditors and this could include the sale of company assets or the proposal of a Company Voluntary Arrangement, or CVA.

PwC's Hussain added: "Our initial focus as administrators will be to engage with parties who may be interested in acquiring all or part of the company".

The administrator has said "whether some or all of the stores or all of the stores will close remains to be decided".

Maplin CEO Graham Harris said the economic fallout of 2016's vote for Brexit had made life even harder.

United Kingdom retailers are struggling to cope with competition from online and the inflationary impact of a weaker pound since the United Kingdom voted to leave the European Union in 2016.