The toy retailer’s CVA proposal has been approved with 98% backing.
According to reporters who were present, today’s meeting, which was postponed twice to allow further discussion with the Pension Protection Fund, came to a successful conclusion for the retailer, with a significant majority of voters backing its proposal.
The new restructuring plan sees Toys R Us agreeing to pay £9.8m into the pension plan – £3.8m in 2018, and £6m over 2019 and 2020. The pension deficit recovery plan has also been shortened to 10 years.
The backing of the CVA means Toys R Us is able to keep all its stores trading over the crucial Christmas period.
Commenting on the successful vote, Steve Knights, managing director of Toys R Us UK, 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.”
As part of the CVA proposal, a number of stores have been identified for closure. Consultations with employees will commence in the New Year.