RETAILER Toys 'R' Us has fallen into administration, putting 3,200 jobs at risk.

Administrator Moorfields has been appointed to conduct what it called an orderly wind-down of the company's store portfolio, although the firm insisted it is still seeking a buyer.

Toys 'R' Us is one of the nation's biggest toy retailers, with more than 100 stores in the UK and 1,500 in 33 countries across the globe.

However, the firm has been grappling with a £15m tax bill, as well as money owed to lenders.

It has struggled with cash flow pressures after sales were squeezed by worse-than-expected trading over the crucial Christmas period.

In addition, falling consumer spending, soaring inflation and competition from online rivals have dented performance in recent years.

Simon Thomas, Moorfields partner and joint administrator, said: "We will be conducting an orderly wind-down of the store portfolio over the coming weeks.

"All stores remain open until further notice and stock will be subject to clearance and special promotions. We're encouraging customers to redeem their gift cards and vouchers as soon as possible.

"We will make every effort to secure a buyer for all or part of the business."

It comes after the beleaguered firm, known for stores in Gateshead, Sunderland and a base on Teesside Retail Park, near Stockton, announced a Company Voluntary Arrangement (CVA) at the end of last year in an attempt to shore up its financial position by allowing it to shut loss-making stores and secure deep discounts on rental costs.

The restructuring plan won the approval of 98 per cent of creditors in December, and had the backing of the Pension Protection Fund (PPF).

The move would see at least 26 loss-making UK stores shut and spark the loss of up to 800 jobs.

The PPF had earlier refused to back the retailer's plans, but concessions from the company, including an offer to reduce its deficit recovery plan to ten years from 15 years, meant the deal received its blessing.

In total, Toys 'R' Us has agreed to pay £9.8m into the pension plan, made up of £3.8m in 2018 and £6m over 2019 and 2020.