Will Lincoln lose its Toys 'R' Us store?

Toys R Us

"If approved by the creditors, the CVA plan would substantially reduce the United Kingdom company's rental obligations and allow the business to move to a new, viable business model", Mr Knights 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", said Knights. But the warehouse style stores we opened in the 1980s and 1990s, while successful in the early days, are too big and expensive to run in the current retail environment.

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.

In the new year customers are expected to see at least 24 of the 84 Toys "R" Us stores shut their doors.

There is a planned closure of 26 stores across the United Kingdom including their stores in Aberdeen, Belfast, Cardiff, Manchester and Watford. "The decision to propose this CVA was a hard one, but we are determined it is the best path forward to make essential changes to the business".

The troubled company announced this afternoon which branches are to be axed as part of a UK-wide reorganisation. Many have closure programmes that tend to be modest.

Toys R Us
GETTY DAMNING FIGURES Toys R Us owes £300m in debt next year alone

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

The store closures will start in Spring next year if the creditors approve the CVA at a meeting later this month. Amazon and similar retailers are sucking share out of the traditional retail market'.

She said: 'Toy retailers, fashion retailers, everyone is going to reduce the size of their stores.

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In October, it was reported that a number of suppliers had stopped delivering stock to Toys R Us in the United Kingdom ahead of Christmas because of problems with credit insurance.

The company, which dates back to the 1950s, arrived in the United Kingdom in 1985 with just five stores. Is the Great British high street dying? The stuff [toys] that are hot are hot, but the rest is mediocre'.

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