NEW JERSEY – A group of investors is planning a comeback for Toys R Us after several hundred stores were closed this summer.
In a bankruptcy court filing Tuesday the group, made up of secured lenders, said that it’s scrapping an auction for Toys R Us despite receiving a number of qualified bids.
The group believes that it stands a better chance by potentially reviving the toy chain, rather than selling it off for parts.
The group will attempt to establish global license agreements and invest in and create new businesses under the Toys “R” Us and Babies “R” Us names.” The investors said they’ll work with potential partners to develop ideas for stores in the U.S. and other countries.
Toys R Us suffered from a $5 billion debt before closing. More than 30,000 people lost their jobs during the closure. Less than a month later, Mattel said it would cut more than 2,200 jobs partly because of lost sales to Toys R Us.
In addition to the debt, Toys R Us found itself competing with Amazon.com and other big toy sellers like Target and Walmart.
The current asset holders did not go into detail about how the company would thrive in such an environment.
