3,200 jobs saved before Christmas
Children’s retailer Toys R Us UK has been saved from collapse after it reached a eleventh hour deal with its largest creditor that has helped the retailer avoid being plunged into administration and the potential loss of 3,200 jobs.
The Pension Protection Fund (the PPF), the UK’s pension lifeboat, chose to support the retailer’s restructuring proposals, reversing its position just minutes before the plans came to a vote of the company’s creditors today.
The PPF had assessed that the UK business’ retirement fund has a funding shortfall of £25m-£35m, leading it to demand a upfront payment from the toy chain of £9m to plug the gap.
98 per cent of Toys R Us creditors voted in favour of the arrangement.
Malcolm Weir, director of restructuring at the PPF’s, said that he could confirm that “an agreement has now been reached and we will now be voting in favour of the proposals at the CVA meeting today.”
Commenting on the successful vote, Steve Knights, Managing Director of Toys R Us UK, said: “We are pleased to have secured the support of our creditors and will be working closely with them in the months ahead. The vote in favour of the CVA represents strong support for our Business Plan and provides us with the platform we need to transform our business so that we can better serve our customers today and long into the future.
“All of our stores across the UK will remain open for business as normal until Spring 2018. Customers can continue to shop online and there will be no changes to our returns policies or gift cards across this period.”