Loss making Toys R Us announces 26 store closures


Retail analyst, Kate Hardcastle said, "Toys R Us has seen a rise in e-commerce as customers feel more comfortable with online shopping". The company hopes to redeploy any staff members from the Cambridge store, just off Newmarket Road, where they can.

The retailer has put forward proposals to shut 26 of its United Kingdom premises as part a a company voluntary agreement (CVA), putting up to 800 jobs at risk.

Mr Knights said: "Like many United Kingdom retailers in today's market environment, we need to transform our business so that we have a platform that can better meet customers' evolving needs".

Toys R Us became...

Toys R US UK said it expected to begin the store closures in the spring.

All 26 stores will remain open through Christmas and New Year.

The company, which has made losses in the United Kingdom for seven of the last eight years, says it needs to "transform the business to meet tough United Kingdom retail market conditions". The CVA, which has to be approved by its creditors, could result in the loss of up to 800 jobs.

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

The restructuring plan relies on gaining creditor approval over the next 17 days, with a vote scheduled for December 21.

The retailer said the branches, which represent about a third of its 84 permanent United Kingdom stores, will close from spring next year.

In an interview with Bloomberg in September, the company's spokesperson, Michael Freitag said, "Like any retailer, decisions about any future store closings - and openings - will continue to be made based on what makes the best sense for the business".

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.