New York
UJ Business
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Toys “R” Us could be making a comeback.
The company closed all its U.S. stores in June due to a bankruptcy liquidation. However, the proprietors of the remaining assets are exploring the possibility of reviving the business, along with the Babies “R” Us brand, as revealed in a recent court filing.
Initially, the company intended to auction off its name and the Babies “R” Us brand. There were already several bids, according to the filing. However, the company’s owners opted to cancel the auction.
The firm indicated that they are contemplating “a new, operational Toys ‘R’ Us and Babies ‘R’ Us branding company.” The proposal aims to “establish fresh domestic retail operations under the Toys ‘R’ Us and Babies ‘R’ Us brands, and to broaden its international reach and enhance its private brands business.”
The specifics regarding the timing and method of the brand’s revival were not made public.
The fact that other companies expressed interest in acquiring the name does not guarantee that they intended to resurrect the brand. Often, companies buy the brands of defunct competitors in bankruptcy proceedings to prevent a new competitor from using the brand. Details regarding who was interested in purchasing the Toys “R” Us brand were not included in the bankruptcy filing.
Toys “R” Us filed for bankruptcy a year ago, hoping to leverage the reorganization process to eliminate debt and continue operations. Unfortunately, after a poorly received Christmas shopping season, the company announced in March its plan to close its remaining 800 U.S. stores and cease operations.
This decision resulted in approximately 31,000 employees losing their jobs. The 70-year-old retailer officially shut down in June.
