IT’S BITTER SWEET

Toys R Us saved but job fears remain as Scots stores face axe

DOZENS of Scots jobs are still at risk at Toys R Us – despite a last-ditch deal saving the chain from collapse yesterday.

Bosses of the troubled firm reached agreement with pension chiefs after frantic talks.

It means they have staved off the threat of administration for now and their restructuring plan should secure about 2500 jobs.

But it’s understood at least four of their 11 Scots stores – Livingston, Kirkcaldy, Aberdeen and East Kilbride – are likely to close in the spring as part of the restructure.

Toys R Us said they would “make every effort to relocate affected staff, where possible”.

They plan to shut 26 of their 105 outlets in the UK, with up to 800 jobs in jeopardy. The bittersweet news came after creditors backed a rescue plan yesterday.

The Pension Protection Fund – representing 600 Toys R Us retirement fund members – had demanded £9million upfront in exchange for backing the shake-up, known as a Company Voluntary Arrangement.

But the PPF agreed to the company paying £9.8million into the pension scheme over three years, while cutting the time to clear their £30million deficit and giving other guarantees.

PPF director Malcolm Weir said the deal had gone “a long way” to allaying their fears.

But independent pensions expert John Ralfe accused the PPF of “blinking first”, adding: “I don’t think they’re in a better position than before.” Toys R Us UK’s managing director Steve Knights said yesterday: “This gives us the platform we need to transform our business.

“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.”