US retail chain Toys R Us has become insolvent despite a creditor agreement late last year. Its pension scheme, with an estimated £25m deficit, has been in a Pension Protection Fund assessment since December.
The chain's failure comes just two months after it won creditor backing, including from the PPF, for a sweeping restructuring plan.
Andy McKinnon, acting chief executive of the PPF, said: "While this is a disappointing outcome, it is one we protected against in our approach to the [company voluntary arrangement] in December."
He highlighted that "the first of the additional payments secured by us has been paid; we believe therefore that the deficit in the pension scheme is lower than it would have been if the company had entered administration in December".
McKinnon added: "We will now be working to maximise the recovery to the scheme from the administration."
