Toys ‘R’ Us Decides To Re-open
Toys R Us will live to see another day, as its controlling lenders choose to pull out of the bankruptcy auction.
The Wall Street Journal reports that Toys R Us’ controlling lenders “intend to revive the business behind the Toys ‘R’ Us and Babies ‘R’ Us brand names.” The goal is to “create new, domestic, retail operating businesses” while maintaining its licensing of certain products worldwide, according to court documents filed Monday, as reported by the Journal. The company’s lenders decided to reverse the order after speaking to controlling parties and deciding the brand was too valuable to give up.
The investors said they'll work with potential partners to develop new ideas for stores in the U.S. and other countries "which would bring back these iconic brands in a new and re-imagined way." The reorganized company will control trademarks, e-commerce assets and data related to the Toys R Us and Babies R Us brands.
Toys R Us representatives first announced that the company was filing for bankruptcy protection in September 2017.
Since then, Toys R Us closed and sold all 735 remaining stores in the United States and ended sales on its website. The Wall Street Journal also reported that “the absence of Toys ‘R’ Us has also left an $11 billion hole in the toy industry.”