Toys R Us to close ‘at least’ a quarter of its UK stores and axe hundreds of jobs
The toy giant has confirmed plans to shut "at least" 26 of its 106 stores in the UK, putting hundreds of jobs at risk
TOYS R US is set to close a quarter of its UK shops with the potential loss of hundreds of jobs.
The toy giant has confirmed plans to shut "at least" 26 of its 106 stores in the UK, putting hundreds of jobs at risk.
It currently employs around 3,200 people in the UK and the closure of the stores could put 800 jobs at risk.
All of the shops are expected to remain open throughout the Christmas period and into 2018 and it is thought that the plans shouldn't affect gift cards or returns.
The toy chain said the closures would start in Spring next year and that there would be "no disruption for customers" over Christmas and New Year.
The firm plans to use a Company Voluntary Arrangement (CVA), which will allow the retailer to pay off its debts over a fixed amount of time.
Which Toys R Us stores are closing?
As the toy giant sets to close a quarter of its stores, these are the shops that will shut down by Spring 2018:
- Aberdeen
- Basingstoke
- Belfast Newtownabbey
- Birmingham St. Andrews
- Bolton
- Bradford
- Brislington
- CAmbridge
- Cardiff
- Derry City
- Doncaster
- East Kilbride
- Exeter
- Hayes
- Kirkcaldy
- Leicester
- Livingston
- Old Kent Road
- Plymouth
- Scunthorpe
- Shrewsbury
- Tamworth
- Tunbridge Wells
- Watford
- York
- Manchester Central Retail Park - already earmarked for closure pre CVA decision
Although, the plan needs to get approval from the company's creditors for it to go ahead.
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.
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“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."
It plans to turn existing locations into smaller interactive stores as well as relaunching the website.
It claims its warehouse style stores, which were opened in the 1980’s and 1990’s, are now too big and expensive to run in the current retail environment.
YOUR SHOPPING RIGHTS
WHILE Toys R US is not expected to close all it's stores, you may be worried about it going bust. Here's how to protect yourself:
- Pay by credit card if spending over £100. Purchases over £100 and under £30,000 are protected under Section 75 of the Consumer Credit Act if an item fails to turn up or goes bust.
- Pay by debit card. Some banks will refund customers under the ChargeBack scheme, although it's at their discretion.
- PayPal. If you pay via PayPal then you may be covered by its Buyer Protection policy.
- Gift gards. If you have a giftcard to use, then spend it as soon as possible. When firms go bust they often stop accepting them.
In September, the retailer filed for bankruptcy in the US and Canada, sparking speculation about whether its UK business would have to take similar steps.
But the company said it was "business as usual" and claimed the move would have no impact on stores and shoppers in the UK.
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