Saturday, September 19News For London

Toys R Us is shutting 26 of its UK stores

Toys R Us store at Great Lodge (Picture;Geograph)

 

Toys R Us is planning to close 26 of UK’s store in the next spring which puts 800 jobs at risk.

Toys R Us announced this morning that it is planning to close 26 of its 105 British stores. The company’s UK managing director Steve Knights said that this decision came because the stores are really huge, not working well and making huge losses.

The decision will be applied in spring 2018 only if 74 per cent of the company’s creditors vote for the decision.

A few months ago, the retailers in US and Canada faced huge debts and bankruptcy, in addition to online competition. That’s why the company see that’s it’s good timing for a new transformation plan.

People on social media started to panic about their layaways, Layaways is a purchasing method that gives the customer the right to pay deposit and hold the product for a specific period of time.

Toys R Us came to the UK in 1985 and started with five stores. Right now it trades through 82 shops around UK operated by 3,200 employees. If the decision is made, this means around 800 employees will lose their jobs.

“Another victim of the internet,” said Gary Rosenthal on Facebook.

Recently it was reported that many suppliers stopped dealing with Toys R Us and refused to supply them with stocks as they have many problems with credit insurance.

The firm promised its customers that the stores will be operating normally during Christmas and will do its utmost effort to make sure Christmas toys are available.