POOLE’S branch of Toys R Us is not on a list of stores earmarked for closure but will shrink as the retailer seeks to avoid going into administration.

The company plans to shut 26 stores and ‘downsize’ others after losing money in each of the last seven years.

It has submitted plans for a company voluntary arrangement (CVA), without which it says it would have to appoint administrators.

The document says the Poole store, at Nuffield Road, is among those that are “marginally profitable” but “underperforming”.

The report says the chain’s model of large warehouse stores is “outdated and no longer viable in most cases” and that many stores of more than 40,000sqft will be downsized to 20,000-25,000sqft.

It says Toys R Us (TRU) has seen sales declining over eight years, save for a “very marginal” rise in 2015-16. Accounts have shown operating losses for each of the past seven years.

The report notes: “The retail trading environment in the United Kingdom is extremely challenging due to a combination of factors, including macro-economic conditions and, for TRU in particular, the lack of historic capital investment.”

The CVA proposal suggests a rent reduction of 15 per cent after seven months if a downsizing is not agreed.

The document also reveals that Toys R Us owes Poole council £62,679, as well as £67,543 to Wessex Print & Signage on the Nuffield Estate and £8,594 to Pacific Cycle UK at the Fulcrum in Poole.