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More doubt cast over future of Toys R Us

Toys R Us at Copdock. Picture: Archant archive

Toys R Us at Copdock. Picture: Archant archive

More doubt has been cast over the future of high street retailer Toys R Us after reports emerged of an outstanding tax bill.

The US-owned chain, which has been put on the market by its parent company, has been set a February 27 deadline to pay a £15m VAT bill, according to Sky News.

The company, which employs 3,000 people across the UK, has stores in Norwich and Ipswich which both survived a spate of closures after the business entered a company voluntary arrangement (CVA), approved just before Christmas, which saw it offset some of its debts.

However, the Norwich branch would have to reduce its rent costs by 25% within seven months as part of that agreement.

The US parent company entered bankruptcy protection last year meaning it has been unable to put money into the ailing UK arm.

A Toys R Us UK spokesman declined to comment on the VAT bill but said: “These conversations are confidential but I can assure you that they are acting in the best interests of employees, business partners, shareholders and lenders.‎”

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