The troubled British arm of US retailer Toys'R'Us narrowly avoided entering administration, it announced on Thursday, after a key creditor embraced its plan to shut stores and plug its pensions deficit. At least 26 of the 105 Toys'R'Us shops in Britain will close from early next year, slashing rent costs in a bid to survive under increasing pressure from online retailers such as Amazon.
The Pension Protection Fund (PPF) had said on Tuesday it would block the retailer's company voluntary arrangement (CVA) - a process often used by businesses in financial difficulty seeking to elude the threat of administration or liquidation - but changed its position after negotiations. The plan was voted through by 98 percent of creditors after Toys'R'Us agreed at the last minute to pay £9.8 million ($13.1 million, 11 million euros) into its pensions plan.
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