Toys R Us to shut 180 US stores

 
Helen Cahill
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Toys R' Us Files For Chapter 11 Bankruptcy Protection
Toys R Us filed for bankruptcy protection in the US last September (Source: Getty)

Embattled retailer Toys R Us is shutting one in five of its stores in the US.

The company, which filed for bankruptcy protection in the US last September, has around 1,600 stores around the world and is closing 180 in its home market.

Meanwhile, in the UK, the Pension Protection Fund (PPF) has given its support to Toys R Us' restructuring plan. Toys R Us proposed a company voluntary agreement, which will involve closing down 26 stores and the loss of 500 jobs. Toys R Us employs more than 3,000 people in the UK.

Read more: Thousands of jobs saved as Toys R Us secures PPF restructuring support

To secure PPF approval for the restructuring, Toys R Us has agreed to pay a total £9.8m into its pension plan, starting with a £3.8m payment this year.

All of Toys R Us' stores in the UK will stay open until spring 2018, and the retailer has said there have been no changes to its return policies.

The rise of online shopping has posed a serious challenge for Toys R Us, which has a sprawling store estate, comprised largely of warehouse-style out-of-town stores. The success of e-commerce businesses such as Amazon has also put the toy retailer under significant pressure.

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