The future of troubled toy retailer Toys R Us will be decided on Thursday, as creditors prepare to vote on whether to back the proposed rescue plan.
The Pension Protection Fund (PPF) had already said it will vote against the plan, after Toys R Us failed to secure £9 million, but both parties have been in talks throughout the night to secure a deal. The pension scheme currently has a deficit of over £25 million, and an outline of the agreement between the two parties is said to include a ten-year commitment to wiping out the deficit.
If Toys R Us cannot secure the support of the PPF in the vote, the company will fall into administration and around 3,200 staff across its 105 stores. The talks are part of Company Voluntary Arrangement (CVA), a last minute step which could save the company but needs the backing of 75 percent of investors.
Earlier this week, Toys R Us told shoppers that “there will be no disruption for customers shopping through the Christmas and New Year period.”
