Toys R Us has gone into administration, putting 3,000 UK jobs at risk.
Moorfields has been appointed to begin “an orderly wind-down” of the UK’s biggest toy retailer.
The corporate recovery specialist said that all stores would remain open until further notice.
Joint administrator Simon Thomas said: “Whilst this process is likely to affect many Toys R Us staff, whether some or all of the stores will close remains to be decided.”
The UK arm of Toys R Us – its US owner filed for bankruptcy protection last September – has 105 shops.
Mr Thomas said: “We will make every effort to secure a buyer for all or part of the business.
“The newer, smaller, more interactive stores in the portfolio have been outperforming the older warehouse-style stores that were opened in the 1980s and 1990s.”
Toys R Us managed to stave off administration in December, when it struck an agreement with the Pension Protection Fund (PPF) to inject £9.8m into its retirement scheme over three years.
The tally of job losses may worsen if Maplin, the electronics retailer, also files for administration.
Maplin employs 2,500 workers and has been attempting to find a buyer for the struggling business, but it is understood that talks with a potential suitor have now broken down.