Further to our article last week regarding the precarious position of Toys r Us UK Limited, it seems that the company has had a stay of execution, but at a cost.
Last Thursday the creditors had to vote on a proposed Company Voluntary Arrangement (CVA). It was expected that the Pension Fund, the major creditor, would not support the proposals.
However the Pension Fund together with most other creditors unexpectedly supported the proposals so the company lives another day!
This restructuring plan is not without its casualties though and 26 of UK stores are set to close with the loss of 500 – 800 jobs.
Toys r Us UK Limited is not safe yet though, they have to keep up with the CVA payments and put significant sums into the pension scheme. With a growing number of consumers shopping online, it will be interesting to see what happens.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.