Recently, the controlling lenders of Toys R Us brand decided to pull out of the bankruptcy auction and have announced that they will revive the business under the same brand name. According to a Wall Street Journal report, the brand will be revived under Toys ‘R’ Us and Babies ‘R’ Us brand names.
Official statement of the controlling lenders stated that they have plans to ‘create new, domestic, retail operating businesses’ under the same brand name and will retain the license of some of their products worldwide. The lenders finally decided to pull back from the auction after taking everyone involved into confidence and deciding that the brand is too valuable to let go.
It was back in 2017 when Toys R Us first announced that company is not doing well in terms of profits and had to shut down all stores across the world in 2017. The official statement came from Dave Brandon, who was the CEO and chairman of Toys R Us which was
Our objective is to work with our debtholders and other creditors to restructure the $5 billion of long-term debt on our balance sheet, which will provide us with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.
Toys R Us closed down 735 stores when it announced its bankruptcy and all online selling was stopped as well. But now it seems that the brand is not dying and will comeback soon with a new brand strategy and positioning.
When Toys R Us was shut down, it left a huge $11 billion gap in the toy industry which will be filled most likely back as Toys R Us is about to come back in the industry. We will keep you informed on more news as we come to know about them.
