The rescue plan for Toys R Us is at risk in a disagreement over its ability to meet its pension obligations.

Earlier this month, the retailer announced plans to close at least 26 stores nationally, including one in Tunbridge Wells, in a bid to restructure its debts which would include rent reductions for its landlords.

However, the process is hanging in the balance after the Pension Protection Fund confirmed it will not support the proposed restructure of the toy giant.

This comes after the company said it could not meet a demand for £9 million to be pumped into its pension scheme.

Toys R Us, which has another store in Chatham, will need 75% of its creditors to support its restructuring plans through a company voluntary arrangement (CVA) or could face administration.

This would put 3,200 jobs at risk, having already pledged to cut 800 roles as part of its proposed store closures.

Its US parent company filed for bankruptcy in September, which means it is unable to lend money to its UK operations.

The vote on whether the CVA is approved takes place on Thursday, by which time Toys R Us and the Pension Protection Fund must have reached an agreement.

Malcolm Weir, the Pension Protection Fund’s director of restructuring and insolvency, told Sky News on Monday: “We continue to work closely with the trustees of the Toys R Us pension scheme and externally appointed advisors given the current CVA proposals.

“We have yet to decide how the creditor rights will be exercised in the CVA vote.

“We are seeking to fully understand the current position of the company, including its future potential, position of the US parent and the reported historic financial transactions.

“The pension scheme is already underfunded and, if we were to vote in favour of the CVA, we would need actions taken that ensure the position of the pension scheme was not going to further weaken.”