Toys 'R Us to close 25 UK stores resulting in hundreds of job losses
The toy retailer has been unable to compete with online shopping and has suffered losses in the last seven years
Toy retailer Toys R Us is set to close 25 of its UK stores resulting in the loss of hundreds of jobs.
The closures come as the toy giant, which currently has 105 stores in the UK, has been struggling to compete with online shopping.
In September, the company's US arm filed for bankruptcy protection to restructure debts of £3.7 billion. The move was intended to ensure that the retailer's suppliers would be paid ahead of Christmas.
While at the time, the firm insisted that its UK stores were safe, the company is preparing to launch a process called a company voluntary agreement to renegotiate debts owed by the company to its landlords as early as next week, which will require the approval of 75 per cent of its creditors.
The toy giant, which has around 3,000 workers, recorded a loss of £500,000 in the year to January. It is understood to have made a loss in seven of the past eight years.
Specialist restructuring firm Alvarez and Marsal is understood to be drafting a company voluntary arrangement (CVA) on its behalf.
The CVA process is separate to bankruptcy protection proceedings involving Toys R Us's US parent company, which were announced in September. According to Mail Online, a Toys R Us spokesperson would not comment on the CVA proceedings, shop closures or job losses.
Stores will remain open and trading will continue during the Christmas period.
According to retail analysts the growth in e-commerce will lead to many retailers reducing the number of stores as customers turn to online shopping.
