Pension Protection Fund tells retailer to put £9m into its pension fund by Thursday.
The proposed restructure of Toys R Us in the UK is currently looking uncertain.
The retailer has been told to put £9 million into its pension fund by Thursday (December 21) by the Pension Protection Fund in order for it to agree to the restructuring plan.
Failure to agree a deal could put Toys R Us into administration and see all of its 3,200 staff at risk of redundancy.
The current plan – which would see at least 26 stores close – is part of a proposed company voluntary agreement, allowing the retailer to restructure its finances.
Malcolm Weir, director of restructuring and insolvency at the PPF, said: “We continue to work closely with the trustees of the Toys R Us pension scheme and externally appointed advisors given the current CVA proposals.
“The pension scheme is already underfunded and, if we were to vote in favour of the CVA, we would need actions taken that ensure the position of the pension scheme was not going to further weaken.”
Meanwhile, recent reports from the US suggest that Toys R Us is considering closing between 100 and 200 stores in the territory, BBC News reported.
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