Toys R Us staves off collapse with UK rescue plan
Struggling toy firm Toys R Us has staved off collapse after coming up with a rescue plan which has been backed by creditors.
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 - including the branch at Doncaster Lakeside - putting 800 jobs at risk. The company employs 3,200 staff in total.
The firm's creditors met today to vote on the rescue plan, which hinged on a resolution of a £25 million pension deficit.
The PPF said the new offer from the company was composed 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.
It means Toys R Us will continue to trade under its company voluntary arrangement (CVA), which is a step short of going into administration. It means that the branch in Frenchgate Centre, Doncaster and at Meadowhall and Crystal Peaks in Sheffield will continue to trade.
Steve Knights, managing director of Toys R Us UK, said: "The vote in favour of the CVA represents strong support for our Business Plan and provides us with the platform we need to transform our business so that we can better serve our customers today and long into the future.
"All of our stores across the UK will remain open for business as normal until Spring 2018. Customers can continue to shop online and there will be no changes to our returns policies or gift cards across this period."