Deal agreed to save Toys 'R' Us from administration
A deal has been put in place to help protect thousands of jobs at Toys 'R' Us after the company was in danger of administration.
The Company Voluntary Agreement proposal has been approved overwhelmingly by the company’s creditors.
98% of Toys R Us creditors voted in favour of the arrangement.
Commenting on the successful vote, Steve Knights, Managing Director of Toys R Us UK, said:
“We are pleased to have secured the support of our creditors and will be working closely with them in the months ahead. The vote in favour of the CVA represents strong support for our Business Plan and provides us with the platform we need to transform our business so that we can better serve our customers today and long into the future.
“All of our stores across the UK will remain open for business as normal until Spring 2018. Customers can continue to shop online and there will be no changes to our returns policies or gift cards across this period.”
As part of the CVA proposal, a number of stores have been identified for closure. Consultations with employees will commence in the New Year.
Alvarez & Marsal is the appointed CVA supervisor for Toys R Us UK.