Toys R Us bankruptcy auction cancelled, retailer will live on as branding firm
Lenders hope new company will maintain licensing agreements and eventually invest in new retail stores
Mourning the loss of Toys R Us may have been premature as the troubled chain's debtors have cancelled the auction of its brand and IP.
The long-running toy and games retailer filed for bankruptcy back in 2017, closing multiple US stores, later liquidating the rest of its Stateside business, and attempting to sell off its UK operations. The firm entered administration back in February.
The company had been planning to sell off its assets, including the Toys R Us and Babies R Us brands, plus assets such as website domains, registry lists and the Geoffrey the Giraffe IP. However, a court filing has revealed plans to revive both brands, Reuters reports.
The firm's debtors plan to re-establish the retailer as a branding firm that handles the existing global license agreements. It is even suggested doing so could eventually enable Toys R Us to invest in and open new stores, as well as revive the business around the world.
The court filing suggests expected bids from the planned auction did not offer "probable economic recovery". Creditors and stakeholders are likely to benefit more if the brands are maintained under the new independent firm.