It seems as if Toys ‘R’ Us, the children’s retail empire of the last couple decades, may not have taken its last breath just yet. Today, they decided to cancel their proposed bankruptcy auction of its brand name, registry lists, and other intellectual property assets and instead have planned to re-establish their company in the market.
For a while, many had assumed that Toys ‘R’ Us had joined the club of numerous retail conglomerates that could no longer stay alive following a recession and the emergence of online purchasing. A year ago, the company had filed for Chapter 11 bankruptcy protection in order to restructure USD$5.5 billion in debt. They then changed course this march, saying they would sell their operations abroad and close their retail locations across the United States. The failure of the iconic toy brand sent shockwaves that negatively affected the entire toy industry. When the company eventually shut down, 22,000 were out of work and the resulting loss in profits for toy producers led to further layoffs in the wider industry.
Having planned an intellectual property auction, it was believed that they would sell their assets to alleviate their financial turmoil. However, despite receiving a plethora of qualified bids, a group of investors are trying to reinvigorate the old brand and its assets like Geoffrey the giraffe.
The bankrupt realtor’s debtors are attempting to make a new Toys ‘R’ Us and Babies ‘R’ Us branding that will keep pre-existing global licensing agreements and help invest and develop in retail distributers. Those leadings its recovery claim the bid was in no way a superior plan to revive the company. It would neither offer “probable economic recovery” to creditors nor noticeable benefits to remaining shareholders.
The investors said they would work with potential partners to draw up new initiatives that “could bring back these iconic brands in a new and imagined way”.