This has come in from to Sky News (via Toyworld Mag). We’re hoping this turns out not to be true, as it would certainly change the landscape of toy retailers in the UK, and could possibly affect a great many jobs (including friends at many branches, and head office too): –
According to Sky News, Toys ‘R’ Us will announce plans next week to close around 25 of its British stores, putting hundreds of jobs at risk.
The board of Toys R Us’s UK subsidiary is expected to announce as soon as Monday that it is proposing to launch a process called a company voluntary arrangement (CVA). A CVA is a mechanism enabling companies to organise their funding and operations while enjoying protection from their creditors.
The move, which will require the approval of a 75% majority of the company’s creditors, would leave roughly 25 of the company’s 105 British shops facing closure, according to insiders. However, the affected Toys R Us shops are expected to remain trading throughout the Christmas period and well into the new year.
Toys R Us employs roughly 3200 people in the UK, so a decision to close a quarter of its stores would affect at least several hundred jobs. It is thought that larger out-of-town stores would be disproportionately affected by the closure plan, owing to their weak performance.
Sources said that Alvarez & Marsal, a specialist adviser on corporate insolvencies, would handle the CVA proposal.
It was unclear whether Toys R Us landlords and other creditors would be prepared to back the proposal, further details of which will become clear next week.
We wait to find out next week if there’s any truth to the rumour. This method is sometimes used to close loss making stores.
In the meantime get 50% off all Star Wars toys (excluding LEGO and video games), ending on Tuesday 5th December — take the link here.