Toys R Us faces collapse with loss of all 3200 United Kingdom jobs


Pension Protection Fund, or PPF, intends to vote against the retailer's restructuring plan, which centres on shutting at least 26 stores, potentially scuttling the proposal.

Under the CVA plans, Toys R Us is proposing to close at least 26 loss-making United Kingdom stores, with the loss of 800 jobs. That deal would lead to the loss of up to 800 jobs.

Because of Toys R Us' troubles, its pension fund is automatically pushed into assessment by the PPF, which will give it a key vote at the meeting and potential to block the process.

All the company's 84 toy stores, along with 3,200 jobs, would reportedly be at risk if the CVA is blocked.

"Given the position of the company, we strongly believe seeking assurances for the pension scheme is reasonable given the deficit in the scheme and questions about the overall position of the company".

LONDON-Toys "R" Us Inc.'s United Kingdom unit, which is at risk of collapse, faces questions from lawmakers about a reported surge in payments to its former managing director.

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The group's United States parent is also unable to lend its United Kingdom subsidiary the cash under the terms of its court-led bankruptcy protection.

Malcolm Weir, director of restructuring and insolvency at the PPF, said the body had yet to decide how to vote: "We are seeking to fully understand the current position of the company, including its future potential, position of the U.S. parent and the reported historic financial transactions".

Despite a recent streamlining of its United Kingdom operations, the warehouses of Toys R Us could grind to a complete halt this week due to a tiresome battle over pension provisions that could see the administrators called in by Thursday.

PPF is open to changing its vote if Toys "R" Us U.K. comes up with an "acceptable" way of tackling the pension shortfall, it said in a December 19 letter to Field.

"Whatever the outcome of the CVA, the pension scheme members can be reassured that they remain protected".