One of Leicester's best-known stores is in jeopardy after hitting major financial problems.
Dominoes Toys made 18 of its 28 staff redundant this morning after it went into administration.
A buyer is now being sought for the stricken city centre business, which continues to trade. However, if a sale is not secured the business will close.
The award-winning family-owned company, founded 30 years ago, has suffered heavy financial losses in recent years.
Administrator Tyrone Courtman, a partner at accountancy firm Cooper Parry, said: "It's a very, very sad day. Dominoes is an iconic name in Leicester.
"The company has incurred significant trading losses in recent years. In the last couple of years they have lost in excess of £1 million and in the past four to five months they have lost in order of £150,000."
Mr Courtman put the problems down to tough economic conditions and competition from supermarkets and online operators.
He said he was expecting it to be difficult to find a buyer for the company, based in High Street in the city.
"I see it being quite problematic given the problems on the high street," he said. "I will be trying my best."
Mr Courtman added: "It's a long-standing family business. You can imagine that the emotions running quite high in this situation. The trouble is if your costs are higher than your revenue it's quite difficult to continue."
Two years ago Dominoes Toys was named the best independent toy store in Britain at the Toy Industry Awards.
The business was founded in 1983 by Leonard Samson and is currently run by his son Steve and other family members.
Two of the redundancies were made at the firm's warehouse off Northgate Street in the city.
