2,400 jobs at risk again as Toys R Us UK future back in doubt
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Toys R Us UK is again under threat amid reports that its US parent company is seeking a buyer for the British business just weeks after securing support for a rescue plan.
According to Sky News, Alvarez & Marsal, the company dealing with the US retailer’s bankruptcy protection, has begun the search for a potential buyer and hopes to sanction a deal within the coming weeks.
It is reported that if new investment cannot be found then administration is a possible outcome even though a Company Voluntary Agreement (CVA) was reached just before Christmas.
The CVA was gave the company time to restructure by closing 26 of its loss-making stores and securing big rent reductions at many others.
The original plan would have seen around 800 jobs cut, but if the sales process does not go as planned a further 2,400 staff who believed their jobs were saved may now also face redundancy.
A Toys R Us UK spokesman said: “The US business is exploring a number of options as it develops plans to exit Chapter 11.
“These conversations are confidential but I can assure you that they are acting in the best interests of employees, business partners, shareholders and lenders.”
