Toys R Us has earned an eleventh hour reprieve as its debt restructuring plans were approved by creditors days after pension officials threatened to pull the rug from under the proposals.

The Pension Protection Fund (PFF) had said it would vote against plans to rescue the business, putting 3,200 jobs at risk, unless the troubled retailer ploughed £9 million into its pension scheme.

The company has agreed to pay £9.8 million into the plan, with £3.8 million paid next year and another £6 million promised over 2019 and 2020.

Yet the restructure confirms the toy giant’s plans to close 26 stores nationally in the spring, including one at Tunbridge Wells, with the loss of about 800 jobs.

Its store in Chatham is not earmarked for closure.

All stores will remain open as normal through the Christmas and the New Year period.

There will be no changes to its returns policy and gift cards remain valid.

At a meeting today, 98% of creditors voted in favour of the restructure, known as a company voluntary arrangement (CVA).

Toys R Us UK managing director Steve Knights said: “We are pleased to have secured the support of our creditors and will be working closely with them in the months ahead.

"We are pleased to have secured the support of our creditors and will be working closely with them in the months ahead..." - Steve Knights, Toys R Us

“The vote in favour of the CVA represents strong support for our business plan and provides us with the platform we need to transform our business so that we can better serve our customers today and long into the future.”

The PFF’s director of restructuring and insolvency Malcolm Weir said: “This offer goes a long way to addressing the PPF’s concerns and in de-risking the pension scheme, offering greater protection for the current and retired members in the pension scheme.”

Along with paying £9.8 million, Toys R Us has committed to address its pension deficit with 10 years – shorter than its original proposals.

It has also “undertaken to seek additional support from the US parent company for the new plan for the pension scheme” according to Mr Weir.

Its US parent company has been unable to help its UK subsidiary after filing for bankruptcy protection in September.

“Furthermore the trustees will have greater powers if any of the above conditions are not met,” he added.

Consulting firm Alvarez & Marsal has been the appointed CVA supervisor for Toys R Us UK.