Wed, 17 Jan 2018 | ADMINISTRATION
Children's toy company Toys R Us is just days from entering administration unless it can find £15 million in rescue funding, according to news reports.
Bosses in charge of the British arm of the international chain are currently searching for investors as they face the prospect of paying a £15 million VAT bill with a deadline of 27th February 2018.
Should the company fail to secure the financial help it needs it will fall into administration at the end of the month, following in the footsteps of its US and Canada-based parent company, which declared bankruptcy last year.
In a bid to avoid the same fate, the company attempted to push through restructuring plans under a company voluntary agreement (CVA). However, this process was halted due to a £30 million deficit in the company's pension scheme.
As a result, the company required approval from the Pension Protection Fund (PPF), which demanded the company add £3.8 million to its pension pot this year and an additional £6 million across 2019 and 2020.
Commenting on the outcome, managing director of Toys R Us UK, Steve Knights, said: "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."
It is hoped that this new approach will allow the company to continue trading while protecting the rights of past and present workers. However, the bankruptcy of its parent firm across the pond suggests that the threat of administration is still looming.
Despite concerns, Mr Knights says he is remaining positive, adding: "This offer goes a long way to addressing the PPF’s concerns and in de-risking the pension scheme, offering greater protection for the current and retired members in the pension scheme."
Bring to the market this leasehold specialist car sales and servicing facility located in Horncastle, Lincolnshire. The trade was established as a limited company in 2005.
LEASEHOLD
Bringing to the market this denim and casual wear retailer, boating a user friendly comprehensive online presence.
Located in the southern end of Weston Park Road in the heart of the popular and sought after residential area of Peverell in Plymouth. It is a busy arterial route which leads onto Mutley Plain and thereafter off the city centre of Plymouth and, as s...
LEASEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.