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Toys“R”Us to close 26 stores in UK

RBR Staff Writer Published 05 December 2017

Toys“R”Us has announced plans to close 26 stores in the UK, as part of its restructuring efforts.

The toy retailer is seeking approval from its creditors to implement its restructuring plan that could put hundreds of jobs at risk.

The toy retailer said that closures will take place in spring next year and there would be no disruption for customers shopping through the Christmas and New Year period.

Under a company voluntary arrangement (CVA) process, the company intends to gain creditor approval to reposition its real estate portfolio for future growth and profitability.

If approved by the creditors, the CVA plan is expected to significantly reduce the company’s rental obligations in the UK and enable it to move to a new, viable business model.

Toys“R”Us UK managing director Steve Knights said: “Like many UK retailers in today’s market environment, we need to transform our business so that we have a platform that can better meet customers’ evolving needs.

“The decision to propose this CVA was a difficult one, but we determined it is the best path forward to make essential changes to the business.”

The retailer said that it would, where possible, make all efforts to redeploy the employees affected by the shop closures.

Knights added: “We recognise this process will affect many of our team members and their families, so we are committed to keeping all of our staff informed throughout this process. Our teams will continue to play a key role in turning our business around.”

In September, the American toy and juvenile-products retailer had closed on $3.1bn of financing facilities to support its operations during its financial restructuring process.

Image: Toys "R" Us in Ontario. Photo courtesy of Raysonho @ Open Grid Scheduler / Grid Engine/Wikipedia.