By Andrew Young-
Toys R Us has presented plans to close at least 26 UK stores, with about 800 jobs at risk.
The news comes ahead of the busy Christmas period, a crucial time for high street retailers which have been struggling to keep up with a boom in online shopping.
The retailer said it is working on a company voluntary agreement (CVA), an insolvency procedure used by retailers to close loss-making stores
Toys R Us says that the stores will remain open during the Christmas period right into the New Year, but the timing of the news should be worrying for their bosses, as customers may protest the closures by withholding their cash over the festive season to support those hundreds of workers who will be without jobs as a result of the closures.
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UK managing director, Steve Knights, said: ‘All of our stores across the UK remain open for business as normal through Christmas and well into the New Year.
‘Like many UK 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.
‘The decision to propose this CVA was a difficult one, but we (are) determined it is the best path forward to make essential changes to the business.’
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‘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 announcement for closure comes after the company’s U.S arm filed for bankruptcy protection in order to restructure debts of £3.7bn last September. At the time, the firm claimed UK stores would not be affected by events occuring across the pond, a position that now appears to have been false. Toy R U’s has long been outcompeted by Amazon, who provide more ease and comfort for shoppers. Toy R u’S has suffered huge losses of up to £500,000 on sales of £418m, their decision to shit down many stores in the UK and cut their losses is one they most probably can’t avoid.
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