Toys R Us has sparked excitement among families after launching a closing down sale with up to 30 per cent off some items.
The beleaguered retailer, which has been a family favourite since the 1980s, is set to close at least 25 of its 105 UK stores in the spring as it attempts to pay off its debts.
The troubled company has faced an onslaught from online rivals such as Amazon, and is struggling to raise the £9million it needs to secure its future.
Toys R Us has launched a closing down sale with up to 30 per cent off some items
The crisis could see Toys R Us name disappear from the UK high street, with some 3,200 jobs at risk across 105 stores
The crisis could see Toys R Us name disappear from the UK high street, with some 3,200 jobs at risk across 105 stores.
The discounts are only available in store, not online, and sister brand Babies ‘R’ Us are also included.
Items on sale include toys, car seats, pushchairs and bikes.
Sources said the chain has had its hands tied by the Pension Protection Fund (PPF), the UK’s pension lifeboat for failed companies, which is demanding a £9million payment which Toys R Us cannot afford.
The PPF said Toys R Us must agree to the payment, which is equivalent to four years’ employer pension contributions, or it will refuse to vote in favour of a process called a Company Voluntary Agreement (CVA).
The CVA would allow Toys R Us to close 26 of its 105 stores and deliver millions of pounds in savings – giving it a chance of survival.
The troubled company has faced an onslaught from online rivals such as Amazon , and is struggling to raise the £9million it needs to secure its future
But Toys R Us must secure the approval of its creditors, landlords and the PPF at a meeting on Thursday to trigger the CVA.
Concerns over an £18.4million black hole in the retailer’s pension scheme have been a major sticking point.
Toys R Us has come under further scrutiny after it emerged that it wrote off a £548.5million loan to a subsidiary based in the British Virgin Islands.
The retailer was plunged into turmoil earlier this year when its US parent company filed for Chapter 11 bankruptcy protection after revealing it had £3.7bn worth of debt. At the time the US arm claimed the incident would have no impact on its UK operations.
According to its latest financial results, Toys R Us UK made a turnover of £418million and loss of £0.5million in the year to January 2017.
It is understood that the store has been loss-making in seven out of the last eight financial years.