Toy chain Toys ‘R’ Us is to close a quarter of its British stores, placing hundreds of jobs at risk.
The board of Toys ‘R’ Us’s UL subsidiary is to announce on Monday that it will launch a company voluntary arrangement process, according to Sky News.
In order for this to happen, a 75 per cent majority of the company’s creditors would need to approve it, which would leave roughly 25 of its 105 British shops facing closure, according to insiders.
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Currently, Toys ‘R’ Us employs around 3,200 people in the UK, which would mean several hundred jobs will be at risk.
All of the affected Toys ‘R’ Us shops will reportedly remain trading throughout the Christmas period and well into the New Year.
A company voluntary arrangement process (CVA) was involved trying to save retailers including BHS, Focus DIY and JJB Sports, all of which have now closed.
Toys ‘R’ Us’s UK operations are understood to have been loss-making in seven of the last eight financial years.
Accounts for the year to January show turnover of £418m, on which it made an operating loss of £0.5m.
The retailer has stores in both Exeter and Plymouth.
Source: Devon live