A quarter of Toys ‘R’ Us stores set to close
4th December 2017
Hundreds of jobs are set to go as Toys 'R' Us prepares to unveil plans to close a quarter of its UK stores.
Toys 'R' Us, which has a store in Gloucester, employs roughly 3,200 people in the UK, as reported by Sky. It's not yet clear which stores have been earmarked for closure, but it's thought that larger out-of-town stores would be hardest hit, as their performance is weaker.
If you're worried about whether you will manage to pick up that must-have toy before Christmas now, all of the stores will remaining trading over Christmas and into the new year.
It is expected that Toy 'R' Us in the UK will announce this week that it is set to launch a company voluntary arrangement (CVA). The move, which will require the approval of a 75% majority of the company's creditors, is expected to lead to the closure of around 25 of its 105 stores.
A CVA is a way of companies organising their funding and operations while enjoying protection from their creditors. In Britain, retailers including BHS, Focus DIY and JJB Sports have all used CVAs to exit loss-making stores.
Toys 'R' Us in the UK is understood to have made a loss 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.
Punchline says: "This looks like yet another case of physical stores, with big overheads, being unable to compete with the might of the likes of Amazon."
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