Toys R Us stores are expected to start making redundancies and close stores over the next week, with 26 loss-making stores first on the chopping block.
After entering administration on February 28, the the UK counterpart of the American toy giant is yet to find a buyer despite administrators Moorfields stating it would make “every effort” to find one.
The prospect of selling of all or part of the toy retailer is looking less and less likely due to the continuing struggles on the high street.
It is understood that the 26 UK stores first earmarked for closure in late December amid its initial company voluntary agreement will be first to go, representing roughly 800 jobs. A full list of these stores can be found here.
If a buyer for any parts of the business is not found, 3000 jobs across 100 other stores will be lost.
Toys R Us UK’s pension deficit is also understood to be in the tens of millions.
The Pension Protection Fund, which will have to foot the bill for the deficit as the retailer’s largest unsecured creditor, estimated the deficit was around £30 million, or as much as £93 million on the basis of a buy-out insurer.