Thursday, 21 December 2017

Toys R Us staved off collapse after creditors backed rescue plan



Toys R Us has staved off collapse after creditors backed a rescue plan for the UK retailer.

 
It follows last-minute negotiations with the Pension Protection Fund (PPF) to secure a £9.8m injection into the company's pension fund.


However, the rescue plan entails closing 26 of its 105 UK outlets, putting 800 jobs at risk, although no stores will close until spring 2018.


Toys R Us employs 3,200 staff in total in the UK.


The retailer's creditors met on Thursday to vote on the rescue plan, which hinged on a resolution of the pension deficit. Toys R Us's UK staff pension scheme has a deficit of more than £25m.
The PPF said the new offer from the company was composed of a payment of £3.8m in 2018, with a further £6m promised over 2019 and 2020.


The vote saw 98% of Toys R Us creditors backing the arrangement.




BBC         News.