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Toys “R” Us Plans for Comeback

Toys “R” Us is considering to come back after lenders decided to let other company maintain their current license.

Instead of auctioning off the Intellectual Property and International Property Assets, Toys “R” Us Inc lenders have decided to bring the brand back on its feet and reorganize the assets into a new company that would maintain the current license agreements and invests in new retail operating businesses.

Besides the stated cause of problems that rose due to online retailers, a massive debt that accumulated due to private equity owners which drove Toys “R” Us into filing for bankruptcy.

The qualified bids on the IP weren’t reason enough to offer a superior alternative, and Toys “R” Us Inc. went to court which then authorized its cancellation of the auction.

A group of funds that had financed Toys “R” Us lenders during the bankruptcy took control of the rights to the company’s name, which now served as collateral on their loans.

With the revival of Toys “R” Us under a new company in mind, it was deemed top priority to maintain the brand under a new independent U.S. business which was the best option to recover Toys “R” Us, as well as the benefit of indirect and direct stakeholders, according to the filing.

Be sure to check out what we have covered so far on Toys “R” Us.

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