Toys R Us and Maplin have collapsed into administration, putting 5,500 UK jobs at risk.
Administrators have been appointed to begin 'an orderly wind-down' of the UK's biggest toy retailer following the failure to find a buyer and all 105 Toys R Us store, which include one on Chester's Greyhound Park and one on Broughton Retail Park, will 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 retailer had been facing a £15m tax bill but flailing sales have made it difficult to pay it off, according to reports.
Mr Thomas added: "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."
Meanwhile, one of the UK's biggest electronics retailers Maplin, which has stores on the Greyhound Park and the Coliseum at Cheshire Oaks, has also confirmed it has called in the administrators after talks with potential buyers failed to secure a sale.
Maplin, which has more than 200 stores and 2,500 staff, will continue to trade through the process.
Chief Executive Graham Harris said the business 'worked hard' to try to keep the business afloat but Maplin could not raise the necessary capital, he added.
Hannah Maundrell, Editor in Chief of Money.co.uk, said of Toys R Us: “The waiting game is over for Toys ‘R’ Us and they've finally filed for administration; their future has been uncertain since they announced store closures last year. It’s sad but unfortunately not surprising as we know they've been struggling to find a buyer.
“It's undoubtedly distressing news for employees of Toys ‘R’ Us especially because their fates have been uncertain for so long. Unfortunately they aren’t the only retailer that has been struggling.
"Anyone who is worried about the future of their job should prepare themselves now. Check what redundancy rights you have and dig out any income or mortgage protection policies you hold just in case.
“Toys ‘R’ Us have reported they will continue trading for now, however it’s currently unknown whether they will still accept gift vouchers and offer refunds. If the administrators decide to suspend gift vouchers and refunds and you paid in cash you could be in for a lengthy battle to get your money back.”