Toy retailer Toyzone has fallen into administration after failing to recover from difficult trading over Christmas.

The 20-store chain has 200 staff and will continue to trade as the administrator looks for a buyer. Its parent company Youngsters, which employs a further 20 staff, has been placed into administrative receivership.

David Crawshaw and Richard Hill of KPMG have been appointed joint administrators of both companies.

Crawshaw said: “Unfortunately, conditions in the sector over the Christmas period, which is traditionally the peak time for toy retailers, were tougher than expected resulting in increased cash flow pressures that the companies could no longer sustain. We are now reviewing options for both parts of the group and hope to secure a buyer for its business and assets.”

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