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Toys 'R' Us Looks to Close Some UK Stores

06 December 2017
Toys 'R' Us Looks to Close Some UK Stores

The retailer said the branches, which represent about a third of its 84 permanent United Kingdom stores, will close from spring next year.

Toys R Us UK said all its stores would remain open as normal through Christmas and into the new year.

Staff found out about the closure in a synchronised announcement across the company's 106 United Kingdom stores this morning - creating uncertainty about their future just before Christmas.

In the new year customers are expected to see at least 24 of the 84 Toys "R" Us stores shut their doors.

It is not known how many jobs are at risk at the Cambridge store.

The troubled toy retailer announced Monday its British division is seeking to restructure its real-estate portfolio under an insolvency procedure called a company voluntary arrangement, or CVA.

Toys R Us has put forward plans to close at least 26 United Kingdom stores, putting up to 800 jobs at risk.

Managing director Steve Knights said: "Like many 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". "We will continue to honour gift cards and "Take Time To Pay" agreements and there will be no change to our returns policy".

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

"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.

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

The firm said it anticipated redundancies among its workforce of 3,200 but did not give a specific number.

Mr 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".

The restructuring plan relies on gaining creditor approval over the next 17 days, with a vote scheduled for December 21.

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