LONDON - Toys R Us U.K. is to seek creditor approval for a restructuring plan involving closing at least 26 of its 105 stores in Britain in 2018, it said on Monday.
The British arm of Toys R Us Inc. of the United States which filed for bankruptcy in September, said it had submitted a Company Voluntary Arrangement (CVA) plan to its creditors and would seek their approval in the next 17 days.
Toys R Us U.K. said that if approved by the creditors the CVA plan would substantially reduce its rental obligations and allow the business to move to a new, viable business model.
The firm said it anticipated redundancies among its workforce of 3,200 but did not give a specific number.
Toys R Us U.K. said all its stores would remain open as normal through Christmas and into the new year.