CAPE TOWN - Planned closure of 26 Toys R Us stores in the UK would mean 800 job loses.

The UK based retailer will soon announce, on Monday, its plans for the closure of about a quarter of its stores.

ALSO READ: Toys “R” Us files for bankruptcy

It is understood that these stores will remain open throughout the Christmas period and into 2018 and that the plans shouldn't affect gift cards and returns.

According to BBC News, the action would form part of a deal to renegotiate debts owed by the company to its landlords - which must be agreed by 75% of its creditors.

Retail analyst, Kate Hardcastle said, "Toys R Us has seen a rise in e-commerce as customers feel more comfortable with online shopping.

ALSO READ: Toys “R” Us South Africa speaks out

In an interview with Bloomberg in September, the company's spokesperson, Michael Freitag said, "Like any retailer, decisions about any future store closings – and openings – will continue to be made based on what makes the best sense for the business".

"Toy retailers, fashion retailers, everyone is going to reduce the size of their stores. It's coming. In the coming 24 months you will see a lot more of this sort of news," 

In September Bloomberg reported that Toys “R” Us Inc in the United States filed for bankruptcy. The retailer was loaded with debt in a buyout more than a decade ago and failed to keep consumers from abandoning its stores for the lower prices and convenience of online shopping.

The company listed debt and assets of more than $1 billion each in Chapter 11 documents in U.S. Bankruptcy Court in Richmond, Virginia. 

Prior to filing, the chain secured more than $3 billion in financing from lenders including a JPMorgan Chase & Co.-led bank syndicate and certain existing lenders to fund operations while it restructures, according to a company statement. 

The funding is subject to court approval.

- BUSINESS REPORT ONLINE