• News comes ahead of the busy Christmas period, a crucial time for high street
• Stores will remain open during the Christmas period and into the New Year
• In September, the company’s US arm filed for bankruptcy protection
Toys R Us is preparing to shut a quarter of its UK stores, with the loss of hundreds of jobs.
The news comes ahead of the busy Christmas period, a crucial time for high street retailers which have been struggling to compete with online shopping.
The toy retailer, which has been a family favourite since the 1980s, could close at least 25 of its 105 stores.
The grim news comes ahead of the busy Christmas period, a crucial time for high street retailers which have been struggling to compete with online shopping
The company is preparing to launch a process called a company voluntary agreement as early as next week, which will require the approval of 75 per cent of its shareholders.
Toys R Us says its stores will remain open during the Christmas period and into the New Year, but the news paints a desperate picture for the business.
In September, the company’s US arm filed for bankruptcy protection in order to restructure debts of £3.7 billion.
The move was used as a guarantee that the retailer’s suppliers would be paid ahead of Christmas. At the time, the firm insisted that its UK stores were safe.
The toy retailer, which has been a family favourite since the 1980s, could close at least 25 of its 105 stores
Retail analyst Richard Hyman said: ‘The vast majority of UK retailers have too many stores. Many have closure programmes that tend to be modest.
‘When an event triggers a bigger intervention, as with Toys R Us, a more realistic closure plan can emerge and this is what we are seeing here.’
Toys R Us recorded a loss of £500,000 in the year to January. It is understood to have made a loss in seven of the past eight years.
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