Cambridge Toys 'R' Us store 'likely to close' next Spring


Cambridge Toys 'R' Us store 'likely to close' next Spring

Toys R Us made a £500,000 operating loss on sales of £418m past year.

The Cambridge Toys "R" Us store in Cambridge is one of 26 scheduled to close in Spring 2018.

The proposed closures come after its United States counterpart filed for bankruptcy in September, having amassed £3.6 billion in debt. The company hopes to redeploy any staff members from the Cambridge store, just off Newmarket Road, where they can.

The private equity-owned company has suffered falling like-for-like sales, with analysts saying it has failed to aggressively build up its online business and lost sales to competitors like Amazon.

The toy retailer, a Top100 trader in IRUK Top500 research, says it may close up to 26 large-format stores in the UK as part of a company voluntary arrangement that seeks creditor approval to reposition its store network.

It now employs 3,200 people and said it would, where possible, aim to redeploy staff affected by the shop closures.

It made an operating loss of £500,000 on sales of £418mln for the year to January.

The kids" toy retailer announced this week that it had planned the closure of a quarter of its stores across the country in response to "evolving needs of customers in today's United Kingdom retail market'.

Toys R Us on the Meole Brace Retail Park in Shrewsbury.

Its managing director, Steve Knights, said warehouse-style stores opened by the retailer have become "too big and expensive to run". "The decision to propose this CVA was a hard one, but we determined it is the best path forward to make essential changes to the business", Knights said.

Mr Knights said: "Like many United Kingdom 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".

It is unclear whether the retailer's landlords and creditors will support the CVA proposal, the same process used by BHS to exit loss-making stores during its demise.

In October, it was reported that a number of suppliers had stopped delivering stock to Toys R Us in the United Kingdom ahead of Christmas because of problems with credit insurance.



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