Toys R Us reaches rescue deal with creditors

Toys R Us has faced significant financial challenges due to high rents, overheads, and a pension shortfall. The company struggled with online competition, as many toys were cheaper online. To avoid administration, Toys R Us needed to address a £30 million pension shortfall, securing a deal that saved jobs but still resulted in some closures. Public opinion highlights the shift to online shopping. The Pension Protection Fund's involvement helped secure the company's short-term future, but long-term strategies are needed to prevent further decline.

What were some of the financial challenges faced by Toys R Us?

• Low customer interest

• Excessive inventory

• Expensive rents and high overheads

• High online sales

Why has the appeal of large out-of-town stores like Toys R Us been declining?

• Higher quality of products in smaller stores

• Increased popularity of small local shops

• Rise of online shopping

• Better customer service in smaller stores

How much cheaper was the Mousetrap game online compared to in-store?

• £3.00

• £8.00

• £5.00

• £2.00

What was the shortfall in the Toys R Us pension scheme?

• £30 million

• £10 million

• £20 million

• £40 million

What was the potential job loss if Toys R Us had not secured the deal?

• 2000 to 2500 jobs

• 1000 to 1500 jobs

• Over 3000 jobs

• 500 to 800 jobs