The Pension Protection Fund has called for Toys R Us to appoint an “independent” administrator in the midst of the retailer’s rescue deal attempts.

A source informed Sky News that the PPF has written to the toy chain’s directors urging the appointment of a new administrator to assist with its restructuring and to supervise any insolvency issues and talks.

The PPF has voiced that it is “uncomfortable” with existing administrator Alvarez & Marsal (A&M) after it orchestrated a Company Voluntary Arrangement just three days before Christmas, Sky News learned.

A spokesman for A&M said in a statement issued to Sky News: "We understand that the PPF has written to the directors of Toys R Us UK. We are aware of our professional responsibilities."

The lifeboat noted that PricewaterhouseCoopers, which has already been advising Toys R Us UK’s pension trustees, is its preferred choice for a new administrator.

Nonetheless, as a result of the PPF’s powers being limited, secured creditors and company directors have the right to choose which firm to appoint.

At the end of last year, Toys R Us reached a £9.8m agreement with the Pension Protection Fund (PPF) which will clear its pension deficit and stop it falling into administration, saving 3,200 jobs.

In a statement, the PPF confirmed a deal had been reached in which Toys R Us will pay £3.8m in 2018 and a further £6m over 2019 and 2020, in what rounds of a tense week for the toy company.

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