A U.K. pension fund has said it will vote against a restructuring plan that will involve the closure of at least 26 stores and the loss of up to 800 jobs in the country, the Financial Times reported Dec. 19.
The Pension Protection Fund has demanded that Toys R Us pay £9 million into its pension scheme, which has a shortfall of about £25 million to £35 million, according to the report. The pension fund reportedly said after a series of talks Dec. 19 that it has not received "sufficient assurance and mitigation" from the U.K. arm of the toy seller that the pension scheme will not be weakened by the restructuring plan.
Toys R Us has offered to pay £1.6 million to the pension fund by March, but has argued that it cannot afford to pay the remaining £7.3 million, the Financial Times reported, citing "people briefed on the talks."
The bankrupt retailer's restructuring plan will be put to a creditor vote Dec. 21. The talks between Toys R Us and the pension fund will continue into Dec. 20.
Toys R Us did not respond to a request for comment.