Toys R Us made the shocking announcement earlier this year that it would close 800 stores and lay off 33,000 employees as part of bankruptcy proceedings in the wake of “devastating” holiday 2017 sales.
But now, it appears that Toys R Us and its related brands may live on in some fashion. The same hedge fund groups that control Toys R Us, and decided to cancel a reorganisation that led to the major changes, have now apparently decided to cancel the bankruptcy and attempt to revive Toys R Us and its brands.
The Wall Street Journal reports that Toys R Us said in court documents this week that it received bids for the Toys R Us, Babies R Us, and Geoffrey the Giraffe brand names, but it decided that the bids would not be able to “yield a superior alternative…”
Instead, the new Toys R Us owners are looking to create a new “branding company” that “maintains existing global license agreements and can invest in and create new, domestic, retail operating businesses.”
As for the employees who were laid off, WSJ reports that two of Toys R Us’ private equity funders, Bain Capital and KKR & Co., plan to create a $20 million fund to give affected employees severance.