Administrators McGrathNicol spoke to employees of the business, which has 44 stores around Australia, on Wednesday to tell them that no buyer had come forward, meaning it will be closed down.

But on Thursday, the Wollongong store on Ellen Street was still open and trading at 10am.

The two staff were unable to comment about the future of the Wollongong and Shellharbour stores, but the Illawarra Mercury understands all stores will close soon.

The chain of toys and baby goods stores has been trading since entering voluntary administration in May.

McGrathNicol said stock will now be liquidated through sales at existing stores before they, along with the head office and Sydney-based distribution centre close ‘‘in coming weeks’’.

Toys ‘R’ Us’s online ordering system will be closed on Friday, with the administrators saying open online orders will be delivered to customers in cases where they have paid in full and stock is available.

Workers will receive all their entitlements from the proceeds of the liquidation and asset sales, McGrathNicol said.

People holding gift cards for the stores will be able to use them until July 5, provided they spend an additional amount equal to the value of the card, and lay-bys will also be honoured until July 5.

There are 17 Toys R Us Australia stores in NSW, including at Wollongong and Shellharbour.

The Wollongong store, on Ellen Street, is an express outlet that has limited range available and no Babies R Us products.

The Shellharbour store, in the Stockland Retail Park on New Lake Entrance Road, is a combined Toys R Us and Babies R Us superstore.

The collapse of the Australian stores follows the failure of the US Toys ‘R’ Us business in March.

The group’s 885 US stores were slated for closure after it was unable to meet the payments on billions of dollars in debt accumulated since it was bought by a real estate investor and two private equity firms in 2005.

AAP

More to come