Struggling retailer Toys’R’Us has confirmed plans to close a quarter of its stores, putting up to 800 jobs at risk.
At least 26 of the 84 Toys’R’Us’s vast warehouse-style shops are to be closed. The company has 105 shops in total, including its newer, smaller shops which the company says have been trading well.
It is also seeking to reduce the size of a further 26 stores along with rent reductions on those and 12 more stores.
Managing Director, Toys’R’Us UK, Steve Knights said, “Like many UK retailers in today’s market environment, we need to transform our business so that we have a platform that can better meet customers’ evolving needs. The decision to propose this CVA was a difficult one, but we determined it is the best path forward to make essential changes to the business,” Knights said.
Knights added, “Our newer, smaller, more interactive stores are in the right shopping locations and are trading well, while our new website has generated significant growth in online and click-and-collect sales. But the warehouse-style stores we opened in the 1980s and 1990s, while successful in the early days, are too big and expensive to run in the current retail environment. The business has been loss-making in recent years and so we need to take strong and decisive action to accelerate the transformation.”