Toys R Us could fall into administration putting over 3,000 jobs at risk

Toys R Us is now facing major business uncertainty after being told to put £9m into its pension scheme by the UK’s Pension Protection Fund (PPF).

By Thursday (December 21), the company needs to have money readily available so the PPF can agree to its revamp proposals.

It was announced that Toys R Us would close at least 26 stores in the UK earlier this month, which will bring up to 800 jobs to be lost. If the retailer doesn’t meet the PPF’s standard, 3,200 staff could be made redundant.

Speaking to the BBC, Richard Hyman said: “This is a real Catch 22 situation. The situation could leave Toys R Us having to choose between the futures of its past or present employees.”

The plan is part of a proposed company voluntary agreement (CVA), allowing the firm to revamp its finances.

If this fails, Toys R Us could potentially fall into administration.