Toys R Us has put forward plans to close at least 26 UK stores, putting up to 800 jobs at risk.

The company initially said there would be no changes over the crucial festive season.

But the firm could collapse as early as this week with reports the chain could be forced into administration - right before Christmas.

The retailer said it was working on a company voluntary agreement (CVA), which would allow it to jettison 26 loss-making stores.

The firm said the transformation plan is needed to "meet the evolving needs of customers in today's UK retail market".

Toys R Us in Ventura Park in Tamworth

But that plan, part of a proposed Company Voluntary Arrangement (CVA) to cut debt whie the company keeps running, has not won the approval of The Pension Protection Fund (PPF).

The fund is designed to protect the pensions of people who work for Toys R Us, and if the company doesn't put £9million aside to pay pensions it could be forced into adminsitration, reports Mirror Online .

Failure to agree a deal could put all its 3,200 staff at risk of redundancy.

It is understood the black hole in the chain’s scheme is around £20m to £30m – with a worst case scenario of £90m.

Toys R Us needs 75% of creditors to approve the CVA. It is believed that the PPF could hold the “swing” vote. The PPF and others have until midday today to cast their vote ahead of a meeting on Thursday.

If the CVA fails, the American chain which employs 3,200 people, could ultimately go into administration.

Malcolm Weir, the PPF’s director of restructuring and insolvency, said: “We are seeking to fully understand the current position of the company.

“That includes its future potential, the position of the US parent and the reported historic financial transactions.