The other day we heard news that warring over pensions could lead to the collapse of Toys R Us UK, which was more bad news for the company that had already announced it was closing 26 stores and putting at least 800 jobs at risk. There's good new now, though, because the retailer has been saved thanks to a last minute deal.
This means 2,500 jobs are safe, but unfortunately the 26 stores already set to be closed won't be hanging around - meaning those 800 staff members will still need to look for new work in early 2018.
The save comes thanks to Toys R Us putting forward a company voluntary arrangement (CVA) that was voted through today with the backing of the Pension Protection Fund (PPF). The PPF had previously refused to back the retailer's plans, but thanks to some concessions from head office mean they're fully behind it. Those concessions include reducing the deficit recovery plan from 15 years down to 10,and paying a total of £9.8 million into the pension plan over the next three years. £3.8 million will be deposited next year, along with £6 million over the course of 2019 and 2020.
Steve Knights, managing director of Toys R Us UK, said:
"We are pleased to have secured the support of our creditors and will be working closely with them in the months ahead. 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.
All of our stores across the UK will remain open for business as normal until spring 2018."
Image: Mike Mozart/Flickr