Thousands of jobs at risk as Maplin and Toys R Us fall into administration – business live

Black morning for UK retail as two chains employing 5,500 people call in the administratorsBREAKING: Maplin calls in administratorsWeak sterling and low consumer confidence blamed2,500 jobs at riskEarlier:Toys R Us has fallen into administrationAttempts to find a buyer seem to have failedStores will keep trading ‘until further notice’3,000 staff face uncertainty 1.48pm GMT Toys R Us nearly collapsed last December, before the company agreed to inject an extra £9m into its pension fund.But today’s administration means Britain’s Pension Protection Fund takes over the scheme, which currently has a £37m black hole.“Members of the company’s pension schemes need not panic. When schemes collapse they fall into the hands of the PPF, who have the responsibility for paying workers’ pensions. Those who already reached the scheme’s normal pension age will receive 100% of their pension. For those who haven’t reached the normal pension age, the PPF will pay 90% of what their pension is worth, up to a cap. This cap is currently just over £38,500 per year for someone retiring at 65, so it only affects the highest earners. Members of the scheme can still take early retirement and a tax-free cash lump sum. In fact, the way PPF calculates these can sometimes be more generous than a typical scheme. 1.08pm GMT The problems at Toys R Us show that the era of retail parks may be over.“With ToysRUs and Maplin going into administration today, the constant change in the retail sector is now being felt in retail parks as much as the high street. These familiar brands have struggled to keep pace with the growing preference for online retail. But it is not just a matter of more people buying online, it is also what these retailers offered as their customer experience.Visiting a toystore with children is generally a fraught experience for most adults. Combined with the fact that a planned visit to a toystore will often require a degree of secrecy from the very same children, the failure of Toys R Us becomes much clearer. Continue reading…
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