Well known toy franchise, Toys R Us is going to shutter almost 25% of its total number of stores across UK. It has around 106 stores across the country. The store has around 3,000 people working for it.
The closure is taking place on the backdrop of the due payments the store has to make to the landlords. It is now planning to move away from it’s out of town model. However the store believes that the news will not affect its sale of Christmas trading and gift cards.
The company is waiting for an approval from its board and US parent company to start talks with landlords. Well known restructuring firm Alvarez and Marsal is said to be drafting CVA on store’s behalf. A Toys R Us spokesperson refused to comment anything further on this.
Retail analyst Kate Hardcastle, said that it is not just Toys R Us but every retail store franchise is facing this change. They are trying to reduce the size of operations.