The UK arm of Toys R Us is on the cusp of falling into administration after failing to secure a new owner.
Insolvency specialist firm Moorfields is expected to take over the retailer’s operations and its 105 UK stores over the next 24 hours.
Landlords British Land, Hammerson and Aberdeen Asset Management each have six Toys R Us stores in their portfolios and will be the most affected by the collapse of the retailer.
According to EG data, the retailer’s entire portfolio stretches to 3m sq ft and the average floor plate for a store is 30,000 sq ft.
Around two-thirds of the portfolio footprint can be found in out of town areas, which could be positive news for landlords looking to re-let the space as, according to EG data, vacancy rates in retail parks are currently at a 20-year low and average rents are between £8-£12 per sq ft.
Many of the larger units will likely be divided, a strategy which Toys R Us began implementing towards the end of last year in an attempt to reduce its costs and rent roll.
The large units that could be divided will likely follow a process similar to that of the restructuring and re-filling of the B&Q portfolio earlier this year.
Leisure operators may also be attracted to some of the units with operators including trampoline parks continuing to expand across the country.
The struggling retailer was looking for a buyer ahead of a deadline for a £15m VAT tax bill due on 27 February.
Moorfields will take over the retailer’s operations. The Pension Protection Fund was previously working with Alvarez & Marshal on the business.
Alvarez & Marshal were responsible for securing the last-minute CVA for the business, which helped Toys R Us from collapsing just before Christmas.
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