Toys R Us faces £15m tax bill to avoid going bust tomorrow

Struggling toy seller Toys R Us could collapse into administration as early as tomorrow as it scrambles to find £15 million for a tax bill.

The retailer, which has about 3,200 employees in Britain, is racing to find a buyer ahead of today’s deadline for its VAT bill. Insiders say that a worse-than-expected performance over the festive period means it doesn't’t have the cash. Administrator Moorfields is on standby.

Hopes to go ahead with a planned company voluntary arrangement (CVA), first announced days before Christmas, are diminishing fast. Under the CVA just a quarter of its 105 shops would shut with fewer job losses — though still in the hundreds.

Separately, Maplin, which sells speakers and game consoles, is in the same boat unless it finds extra cash to pay some of its debts and save it from falling into administration.

Suitor Edinburgh Woollen Mill (EMW) said it will not come to the rescue of the ailing business if its current owner, Rutland Fund Management, sells out completely. EMW still wants Rutland to have a say in how Maplin is run.