Toys R Us proposes ten-year pension deal to stave off collapse

Toys R Us rescue plan at risk of crumbling as PPF demands £9m injection

Pension Protection Fund, or PPF, intends to vote against the retailer's restructuring plan, which centres on shutting at least 26 stores, potentially scuttling the proposal.

Toys R Us has proposed a deal that could wipe out its pension deficit within a decade in an eleventh-hour attempt to stave off a collapse threatening 3,200 jobs.

Earlier this month, Toys R Us confirmed that it was set to close at least 26 stores in the United Kingdom as part of a proposed company voluntary arrangement (CVA).

If the CVA doesn't get the go-ahead, the company could fall into administration, potentially putting all 3,200 United Kingdom jobs at risk of redundancy with less than a week to go before Christmas.

The company had a cumulative pensions deficit of £18.4m in January and the pensions lifeboat could be put at risk if it didn't come up with the £9m that the PPF was requesting.




Sources close to the process claim that Toys R Us' hands are tied as it doesn't have £9mln spare to inject.

The company rebuffed the bailout fund's own proposal, which entailed Toys "R" Us U.K. adding £8.9 million to its corporate pension pot within a few months, according to the letter. The parent company filed for Chapter 11, the United States version of administration, in September after running up $5bn (£3.7bn) of debts.

A PPF spokeswoman said: "The pension scheme is already underfunded and, if we were to vote in favour of the CVA, we would need actions taken that ensure the position of the pension scheme was not going to further weaken".

Malcolm Weir, director of restructuring and insolvency at the PPF, said: "Given the position of the company, we strongly believe seeking assurances for the pension scheme is reasonable given the deficit in the scheme and questions about the overall position of the company".

Yesterday, the PPF stressed that talks will continue with Toys R Us in the hope of reaching an agreement ahead of Thursday's crunch vote.

Related news:

Hot News

isis-killer-beheading-video-story-top Magic Leap Finally Reveals Hardware, Dev Kits Ship Early 2018
Dec 21, 2017 - 01:13
Similarly, Business Insider , The Verge , Engadget , CNBC and others wrote about the website , citing the alleged features. We are more of a premium artisanal computer, " suggesting we are nearly certainly talking about several thousand dollars.

isis-killer-beheading-video-story-top Panthers owner Richardson to sell team amid misconduct allegations
Dec 21, 2017 - 01:12
Richardson, a former receiver for the Baltimore Colts, received a heart transplant in 2009 that saved his life. Richardson, 81, in a statement wrote, "I believe that it is time to turn the franchise over to new ownership".

isis-killer-beheading-video-story-top New York Islanders to leave Brooklyn, return to suburbs
Dec 21, 2017 - 01:10
The new arena will be situated in one of the track's parking lots, not far from a Long Island Rail Road station. It now has no major sports teams playing there regularly and fills its calendar with concerts and other events.

isis-killer-beheading-video-story-top You Can Manage Your Identity on Facebook Using Face Recognition
Dec 20, 2017 - 01:24
Now, if you're in a photo and are part of the audience for that post, we'll notify you, even if you haven't been tagged. In line with ongoing advancements in facial recognition technology, Facebook will do this even if you're not tagged.

isis-killer-beheading-video-story-top House approves Republican tax overhaul; Senate vote next
Dec 20, 2017 - 01:22
It would almost double the standard deduction to $24,000 for a married couple, and double the child tax credit to $2,000. And there are signs that the tax debate has taken a political toll on Republicans and the president alike.

isis-killer-beheading-video-story-top Lady Gaga Announces Vegas Residency
Dec 20, 2017 - 01:18
Additionally, she performed at this year's most coveted venue, the Super Bowl Halftime show. "The rumors are true". See photos of Gaga making things official by announcing her residency at an event...

isis-killer-beheading-video-story-top Expect heavy traffic during Tuesday's Boca Raton Bowl
Dec 20, 2017 - 01:17
For FAU , the Boca Raton Bowl gives the local fans one last chance to watch this high-powered offense play in their own stadium. The Zips are bowling for the second time in three years but just the third time in 32 FBS (or Division I-A) seasons.

isis-killer-beheading-video-story-top Airlines inch back to normal flow after Atlanta airport fire
Dec 19, 2017 - 11:10
You will need to check the airport's website to see what decision has been made with your flight if it has to stop in Atlanta . Green said the pilot told passengers that other flights that had ran out of fuel were evacuated before theirs.

isis-killer-beheading-video-story-top Reboot of The Office in the works
Dec 19, 2017 - 11:09
The wait might be getting over with news trickling in that The Office will make a comeback, as reported by Variety . The revival is in the planning phases mainly because the return of NBC's Will & Grace proved to be a hit.

isis-killer-beheading-video-story-top Sarah Palin's son, Track, arrested on domestic violence charges for second time
Dec 19, 2017 - 11:07
Fulton fire officials said the dog fell through the Oswego River's ice Sunday afternoon, and a man and woman tried to help. Track Palin arrived anyway, so Todd Palin grabbed his pistol to "protect the family" and met Track at the door.

isis-killer-beheading-video-story-top Terry Rozier wins game for Celtics with steal and last-second dunk
Dec 19, 2017 - 11:07
The Celtics were only three field goals made away from tying their season high for most baskets made in a game. Irving stepped out to the left corner for a 3-pointer, cutting the IN lead to 107-105 with 27.5 seconds left.

isis-killer-beheading-video-story-top Twitter starts enforcing new policies on violence, abuse, and hateful conduct
Dec 19, 2017 - 11:06
President Donald Trump caused an uproar last month when he retweeted several of Fransen's posts that contained anti-Islam videos. Monday morning, Twitter suspended the account of the deputy leader of nationalist United Kingdom party Britain First .

isis-killer-beheading-video-story-top Britain in favour of UN Security Council resolution on Jerusalem
Dec 19, 2017 - 10:59
The vote has underlined once again the widespread global opposition to the USA move, even among some of its closest allies. Embassy, for now, will remain in Tel Aviv", Matthew Rycroft told reporters before the vote.

isis-killer-beheading-video-story-top MSNBC's Chris Matthews was reprimanded over comments about woman in 1999
Dec 18, 2017 - 01:12
The website, citing two sources, reported that NBC paid the woman $40,000 to settle her claim against Matthews in 1999. MSNBC declined to comment on whether there are other sexual harassment claims in Matthews' history at the company.

isis-killer-beheading-video-story-top Antonio Brown Not Expected to Return After Suffering Calf Injury vs. Patriots
Dec 18, 2017 - 01:08
The team FaceTimed with Shazier from the locker room after clinching the AFC North title in a Week 14 win over the Ravens . The injured Steelers linebacker is in a suite at Heinz Field this afternoon watching his teammates take on the Patriots .