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It was the Christmas news no one wanted, but now it looks like Toys R Us will avoid going into administration after reaching a deal over pensions.
All of our childhoods were left in tatters after the sad announcement was made, but now it looks like the toy retailer has been saved from collapse. However, the plans to close a third of its stores, leaving 800 jobs at risk, still look to be going ahead.
The Pension Protection Fund (PPF) gave Toys R Us until lunchtime today to agree to fill a £9 million pension shortfall. It has since confirmed the retailer will pay the amount, meaning bosses will vote in favour of plans to restructure the business rather than close it altogether.
Malcolm Weir, of the PPF, told The Sun: "We have been working closely with Toys R Us and their advisers in the run up to the vote.
"We can confirm that an agreement has now been reached and we will now be voting in favour of the proposals at the meeting today."
"The company has agreed to pay £9.8 million into the pension plan, composed of £3.8 million in 2018, with a further £6 million promised over 2019 and 2020.
"This offer goes a long way to addressing the PPF's concerns and in de-risking the pension scheme, offering greater protection for the current and retired members in the pension scheme."
Steve Knights, Managing Director of Toys R Us, 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. Customers can continue to shop online and there will be no changes to our returns policies or gift cards across this period."
Toys R Us will be using a Company Voluntary Agreement (CVA), which will mean it can pay off debts over a set period of time.
According to The Sun, the retailer will relaunch its website and turn its existing store locations into smaller ones
Source: The Sun
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