Toys R Us confirms store closures as MPs scrutinise failing chains

Toys R Us confirms store closures as MPs scrutinise failing chains

Toys R Us UK is to seek creditor approval for a restructuring plan involving closing at least 26 of its 105 stores in Britain in 2018, it said on Monday.

The UK Company Voluntary Arrangement (CVA) process will not impact any Toys R Us entities or stakeholders outside the UK, including employees, vendors and customers, it said.

Knights added the retailer's warehouse-style stores, which opened across the 1980s and 1990s, had become "too big and expensive to run in the current retail environment".

The New Jersey headquartered Toys R Us, Inc. announced on Monday that under a major global restructuring its United Kingdom operation was initiating "a process by which it is seeking creditor approval to reposition its real estate portfolio for future growth and profitability".

The company employs 3,200 people in the UK.

It now employs 3,200 people and said it would, where possible, aim to redeploy staff affected by the shop closures.

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.

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"Like many United Kingdom 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".

Toys R Us UK is also thought to have made losses in seven out of the last eight years.

"We will continue to honour gift cards and Take Time To Pay agreements and there will be no change to our returns policy", the spokesperson told the "Journal".

'The decision to propose this CVA was a hard one, but we (are) determined it is the best path forward to make essential changes to the business'.

The UK arm's CVA restructuring plan must be approved by creditors in a vote scheduled for December 21.

The UK arm of Toys R Us is owned by the USA company, but run as a separate business.

In September, the company's U.S. arm filed for bankruptcy protection to restructure debts of £3.7bn.

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