Toys R Us workers face job losses as 25 stores face closure in the UK

Hundreds of the toy giant's jobs are at risk
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Martin Coulter1 December 2017

Hundreds of jobs are under threat after Toys R Us revealed plans to close a quarter of its UK shops, reports say.

The BBC reports the toy giant is planning to close 25 of its 106 stores as part of a deal to renegotiate debts owed by the company to its landlords.

Reports say the company, which has around 3,000 workers, is looking to move away from its "big box" out-of-town model to focus on its online retail operation.

The chain has been loss-making for seven out of the past eight years, with the most recent accounts filed at Companies House showing an operating loss of £500,000 on sales of £418m in the year to January.

It is apparently seeking approval from its board and US parent company, of the same name, to begin talks with landlords.

Specialist business restructuring firm Alvarez and Marshall is understood to be drafting a company voluntary arrangement (CVA) on its behalf.

The CVA process is a separate process to bankruptcy proceedings involving Toys R Us's parent company which were announced in September.

In October, it was reported that a number of suppliers had stopped delivering stock to Toys R Us’s UK chain ahead of Christmas because of problems securing credit insurance.

Speaking to the BBC, a Toys R Us spokesman declined to comment.

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