Not so long ago it would have been virtually unthinkable that a household name such as Toys R Us would enter into an insolvency regime.
However, the fact that it is poised to do so raises questions about the "warehouse" model which has been popular with retailers on out of town shopping centres.
It seems that some of these large warehouses are too expensive to run profitably with competition from online retailers and more niche offerings. The warehouse model is said by some to lack the kind of modern customer experience being offered at some high end malls. These factors may well mean that this model needs to be completely overhauled and other big names may well look to pull out of this type of property. Perhaps retailer will leave the major distribution warehouses more to the likes of Amazon with a focus on logistics rather then customer experience in such properties.
It is also a point for landlords to look at in terms of tenant mix and how they may need to develop their out of town centres to keep up with modern trends. This could mean more very large Amazon style warehouses coupled with smaller more affordable units which focus on customer experience.
Market forces on both landlords and tenants may therefore start a step change in the look of out of town centres over the next few years.
Toys R Us has entered into a Company Voluntary Arrangement (CVA) and expects to make redundancies and close branches as it looks for a way to transform its business model.