Toys R Us to shut 'at least' 26 United Kingdom stores

Toys R Us to shut 'at least' 26 United Kingdom stores

Staff at Kirkcaldy's branch of Toys R Us are today finding out if their store will be one of the 26 marked for closure across the UK.

It detailed how Toys R Us, which employs 3,200 people, plans to restructure using a process known as a company voluntary arrangement with its creditors.

Toys R Us UK said that if approved by the creditors the CVA plan would substantially reduce its rental obligations and allow the business to move to a new, viable business model.

The company has 105 shops in total, including its newer, smaller shops which the company says have been trading well.

Toys "R" Us, which now employs around 3,200 people in the United Kingdom, will continue to sell toys online and its smaller, "more interactive" stores will remain open.

Mr Knights said the closures had been "a hard decision" but said the company needed to take "strong and decisive action" to try and turn around the business.

"The decision to propose this CVA was a hard on, but we determined it is the best path forward to make essential changes to the business".

He said there would be no changes to the returns policies or gift cards across this period.

The news comes ahead of the busy Christmas period, a crucial time for high street retailers which have been struggling to keep up with a boom in online shopping.

The proposed closures come after its USA counterpart filed for bankruptcy in September, having amassed £3.6 billion in debt.

The toy chain said the closures would start in spring next year and that there would be "no disruption for customers" over Christmas and New Year.

Toys R Us is a subsidiary of the eponymous USA chain, which filed for bankruptcy protection in September after running up $5bn (£3.7bn) of debts. The move was meant to ensure that the retailer's suppliers would be paid ahead of Christmas. "Today's proactive measure better positions us to achieve these goals and ensures customers can continue to shop us with confidence over the Holiday season and beyond".

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It made an operating loss of £500,000 on sales of £418mln for the year to January.

He said: 'It's been a disastrous November for the industry.