Toys R Us announces that it is to close 26 of its stores across the UK by Spring 2018

Toys R Us has announced that it is to close at least 26 of its stores in the UK by Spring 2018. The move comes after the firm instigated a Company Voluntary Arrangement (CVA). A Company Voluntary Arrangement (CVA) allows a company with debt problems or that is insolvent to reach a voluntary agreement with its business creditors regarding repayment of its corporate debts over an agreed period of time. Toys R Us, which has a store at Crescent Link Retail Park in Derry (pictured above), has said that this ‘will entail changes to the store estate as it moves to a new and exciting business model’. It has not said which stores will be impacted by the closures, and added that there will be no disruption for customers shopping through the Christmas and New Year period. The business currently employs 3,200 people, and as part of the CVA process, it anticipates a requirement to make redundancies. Toys R Us has said all efforts will be made to redeploy team members where possible. Commenting on the plans, Steve Knights, Managing Director of Toys R Us UK, said: “All of our stores across the UK remain open for business as normal through Christmas and well into the New Year. Customers can also continue to shop online and there will be no changes to our returns policies or gift cards across this period. “Like many UK 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. “The decision to propose this CVA was a difficult one, but we determined it is the best path forward to make essential changes to the business.”