New York
CNN Business
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Reports suggest that the popular toy retailer, Toys “R” Us, may be on the path to revival.
The company has been absent from the market since June of last year, following its filing of bankruptcy and eventual liquidation. However, recent court filings have revealed that the owners of Toys “R” Us’ remaining assets are exploring the possibility of reviving the business. This also extends to reviving their subsidiary brand, Babies “R” Us.
Initially, Toys “R” Us had put the rights to its name and subsidiary brand up for auction. Potential buyers had offered bids in hopes of owning the brand. However, the owners of the remaining assets decided to cancel the auction.
The recent court filings stated that the owners are considering setting up an operating company under the Toys “R” Us and Babies “R” Us branding. This would involve creating new retail businesses, expanding their international presence and developing private brands merchandise.
However, no definitive details have been disclosed regarding a relaunch of the brand.
It is essential to mention that merely bidding for the brand doesn’t necessarily mean that other buyers were interested in reviving the business. Companies also bid for the brands of out-of-business competitors during bankruptcy proceedings to prevent the brands from being used again by a new competitor. In the recent filings, there was no disclosure of who was interested in buying the brand.
After initially filing for bankruptcy one year ago, with plans to restructure and reduce its debt, Toys “R” Us was forced to close all 800 of its remaining US stores in March due to poor Christmas sales figures. The move resulted in the loss of 31,000 jobs and led to the possible demise of the 70-year-old retailer.
Nevertheless, reports suggest that Toys “R” Us may be making a comeback, which would be a significant boon for the retail industry.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
