Toy News are reporting that the revival of Toys ‘R’ Us as a brand is looking likely, read on for more….
Lenders are now working towards a relaunch of the retail chain, according to new documents.
In a bankruptcy court filing on Monday, the funds that now control Toys R Us said they’d cancelled their plan to auction off the company’s intellectual property. Instead, reports suggest that are seeking to reorganise the assets into a new company.
That new company, it is said, will maintain the current license agreements and invest in new retail operating businesses.
Maintaining the brands under a new independent US business seemed to have been the best option with respect to the Toys R Us recovery. The filing suggested that this would also benefit indirect and direct stakeholders.
“The qualified bids were not reasonably likely to yield a superior alternative,” was the thrust of the document. The cancellation of the auction has now been authorised.
A group of funds that financed Toys R Us lenders during the retailer’s bankruptcy now controls rights to the company’s name. The reason for this is that the intellectual property served as collateral on their loans. The group includes Solus Alternative Asset Management and Angelo Gordon.
More on this as it breaks.