Embattled toy retailer Toys R Us is looking to shutter nearly a quarter of its UK stores, placing hundreds of jobs at risk.
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.
For the closures to go ahead, 75 per cent of its creditors would have to give the green light.
If the action were to be approved, the affected stores would still stay open through the Christmas trading period.
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 proposed closures come after its US counterpart filed for bankruptcy in September, having amassed £3.6 billion in debt.
Toys R Us UK is also thought to have made losses in seven out of the last eight years.
It is unclear whether the retailer’s landlords and creditors will support the CVA proposal, the same process used by BHS to exit loss-making stores during its demise.
It is understood that specialist corporate insolvency advisors Alvarez & Marsal would be brought in to handle the process.