Today, the plans of Toys R Us’ to restructure are in question as it emerged that the pensions watchdog was contemplating on whether to renounce its plan for a Company Voluntary Agreement (CVA).
Sky News reported that the Pension Protection Fund (PPF) could prevent the plan of Toys R Us’ to restructure the business, which will include closing roughly a quarter of its stores and hundreds of jobs could be lost.
Last week, Toys R Us confirmed that it would seek creditor approval for the CVA at a meeting that is scheduled later this month.
According to sources of Sky News, the PPF worries that the CVA could suggest “simply kicking the can down the road.” Toys R Us has currently appointed PwC to guide on the restructuring plan. The said move was reportedly prompted by the PPF, which could end up taking on the scheme.
Toys R Us refused to comment on the matter.