Published: Wed, December 06, 2017
Tech | By Dwayne Harmon

Toys R Us to shut four Scottish stores with jobs at risk

Toys R Us to shut four Scottish stores with jobs at risk

"Toys R Us gave public assurances three months ago that United Kingdom stores were unaffected by the company going into administration in the USA - a message which gave those staff a false sense of security".

"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 move was meant to ensure that the retailer's suppliers would be paid ahead of Christmas.

"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.

Larger out of town stores are expected to be hit hardest, with one source stating that the warehouse-style stores that opened in the 1980s and 1990s are too big to operate profitably.

The CVA restructuring plan needs the backing of Toys R Us's creditors in the next 17 days.

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".

According to Sky News, Toys R Us' UK arm is set to propose the closure of 25 of its 105 UK stores, putting swathes of its 3200-strong UK workforce at risk of redundancy.

"We are reviewing options, including downsizing the store or a rent reduction". Amazon and similar retailers are sucking share out of the traditional retail market'.

Alvarez & Marsal is restructuring advisor for Toys R Us, while Kirkland & Ellis is principal legal counsel.

"Toy retailers, fashion retailers, everyone is going to reduce the size of their stores". Download it today and continue to enjoy STV News wherever you are.

The UK business is understood to have made a loss for seven out of the past eight years of trading.

The group's history dates to the 1950s in the U.S., but it did not arrive in the United Kingdom until 1985. The closures marks a major shift in business policy for the toy chain. Experts said November had been a disastrous month for the toy industry, with sales down 10% and profit margins under pressure from excessive discounting. Is the Great British high street dying?

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