Spend Your Toys R Us Vouchers Now! The Brand Could Close Days Before Christmas

Elizabeth Elden
20th December 2017, 2:00 PM
  • Retailer needs to put £9 million in it’s pension fund
  • 3,200 jobs could be lost
  • US and Canada branches have filed for bankruptcy measures
  • Spend any vouchers or store credit as soon as possible
US owned toy retailer has filed for bankruptcy to try and keep the brand viable. Image: Getty

Toys R Us could be closed in just a few days time, as the brand is currently facing bankruptcy over it’s pension scheme and debts, meaning shoppers should spend their vouchers soon to prevent them becoming void.

At the same time, shoppers are set to spend £15 billion this weekend on Christmas shopping.

The retailer has already had to close stores this year as it has struggled to raise dwindling profits.

After being hugely popular when it was introduced to the UK from the US, Toys R Us has failed to keep up with the cheaper prices of its’ competitors.

The current issue that is facing Toys R Us is to do with its’ debt levels, which have skyrocketed as the company has tried to stay afloat.

As the brand has struggle with profits, it is trying to use the bankruptcy process to get the company restructured, and make it viable in the long term.

Restructuring would see debts being sold off, but the Pension Protection Fund, PPF, has said that before this happens, it must put £9 million into the retailers pension fund, so employees won’t lose out if the brand’s plans fail.

The PPF has become tougher on brands since the regulator was heavily criticised for failing to better protect pensioners during the failure of BHS; PPF is trying to prevent this happening to Toy R Us staff.

If Toys R Us cannot put £9 million into the pension fund, it will face closure, as the PPF will vote down it’s plans to restructure, which will lead to the stores closing down.

This would mean the loss of 3,200 jobs across 84 stores in the UK.

However, if the brand’s plans do get approved, 800 jobs will still be at risk, as Toys R Us have proposed to close 26 loss-making stores.

The PPF is voting on the future of Toys R Us today, and it’s verdict will be announced later.

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