Toys R Us could go into administration

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Struggling retailer Toys R Us could go into administration after being told to plough millions of pounds into its pension fund.

More than 3,000 jobs could be lost if the retailer collapses following the £9m demand from the state-backed Pension Protection Fund (PPF).

Toys R Us, which has branches in Leeds, Wakefield, Bradford and York, previously announced plans to close 26 branches, with the loss of 800 jobs, under a company voluntary arrangement (CVA).

Insolvency rules mean the CVA requires the support of the PPF, a statutory body set up to compensate pension fund members in the event of a company’s collapse.

All the company’s 84 toy stores, along with 3,200 jobs, would reportedly be at risk if the CVA is blocked.

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.

“The filing of CVA proposals means that an assessment period is automatically triggered for a pension scheme. Whatever the outcome of the CVA the pension scheme members can be reassured that they remain protected.”