Toys R Us seeks to close at least 26 UK stores
Struggling toy retailer Toys R Us has confirmed that it is seeking to close at least 26 of its 84 UK stores as it looks to transform the business by restructuring its lease obligations.
Although the stores will remain open throughout the Christmas trading period, the closures will put 800 jobs at risk.
Under the company’s proposed UK company voluntary arrangement, 75% of creditors will need to approve a restructuring plan that includes the shop closures.
Dave Brandon, chairman and chief executive of Toys R Us, said: “As we continued to work through the financial restructuring process, we made the decision to take action to put our UK operation on stronger financial footing. Through the CVA process, we hope to receive authorisation to restructure our UK lease obligations so that we will be better able to invest in our UK business and further improve the customer experience. Importantly, our stores and operations in our other global markets will not be impacted by this process.”
Toys R Us said it will begin the closures in the Spring. While it will look to move some staff to smaller and “more interactive” stores, the company said it is likely that there will be some redundancies.
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