Tamworth Toys 'R' Us store to close

Toys R Us has flagged a string of store closures in the UK

The struggling retailer said that it was taking "strong and decisive action" by entering a company voluntary arrangement, a contentious insolvency process used by retailers to close loss-making stores, in an attempt to revive profits in its United Kingdom business.

The future of jobs at Toys "R" Us in Dundee has been cast into doubt amid plans by the firm to close 26 stores across the United Kingdom and downsize several others.

It is unclear whether the retailer's landlords and creditors will support the CVA proposal, the same process used by BHS to exit loss-making stores during its demise.

The firm, which has 84 stores and a further 21 concessions in the United Kingdom, where it employs a total of 3,200 people, said that it would not start closing stores until spring next year.

Toys R Us is a subsidiary of the eponymous United States chain, which filed for bankruptcy protection in September after running up $5bn (£3.7bn) of debts.

He said there would be no changes to the returns policies or gift cards across this period.

When asked if either option could potentially lead to job losses at the store, the spokeswoman would say only that efforts would be made to redeploy staff in other branches where possible.

The toy chain said the closures would start in spring next year and that there would be "no disruption for customers" over Christmas and New Year.

He added: '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 firm said the transformation plan is needed to "meet the evolving needs of customers in today's United Kingdom retail market".

There will be no detrimental effect to Christmas shopping for your children as all of the stores in the United Kingdom will remain open throughout Christmas this year.

"The decision to propose this CVA was a hard one, but we determined it is the best path forward to make essential changes to the business", Mr Knights said.

Under the CVA process, Toys R Us UK has submitted a plan to its creditors.

Professional services firm Alvarez & Marsal is serving as restructuring advisor to Toys R Us.

The move will mean the loss of up to 26 stores out of its total of 105 throughout the UK.

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