Toys R Us reaches rescue deal with creditors

Toys R Us reaches rescue deal with creditors

Assessment

Interactive Video

Business, Other

University

Hard

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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.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

£3.00

£8.00

£5.00

£2.00

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

£30 million

£10 million

£20 million

£40 million

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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