Brand management company WHP Global announced it has acquired a controlling interest in Tru Kids, the parent company of the Toys R Us and Babies R Us brands. WHP plans to open a number of Toys R Us stores again in the U.S., ideally ahead of this holiday season.
Tru Kids bought the brands and intellectual property from Toys R Us after it filed for Chapter 11 bankruptcy protection in September 2017.
The acquisition includes more than 20 related consumer brands in its portfolio including Journey Girls, Fastlane, True Heroes, You & Me, Just Like Home, and Imaginarium. WHP said Toys R Us and Babies R Us generated over $2 billion in global retail sales annually through nearly 900 branded stores and e-commerce sites in over 25 countries across North America, Europe, Asia, Africa, Australia, and the Middle East.
WHP said it is now a significant shareholder of TRU among a group of institutional investors that includes funds managed by Solus Alternative Asset Management and funds managed by the Private Equity Group of Ares Management Corporation. Going forward, WHP will manage the global TRU business and direct its strategic expansion.
Yehuda Shmidman, chairman and CEO at WHP, commented, “Our investment in Toys R Us reflects our belief and passion for the brand. We are thrilled to be taking the reins of the world’s leading toy brand at a time when the category is up 16 percent and consumer demand for toys is at an all-time high. This is a natural fit for WHP, as we can leverage our global network and digital platform to help grow Toys R Us and Babies R Us around the world.”
Shmidman has extensive experience with the brands, having served as vice-chairman of TRU since 2019.
Including TRU and its fashion brands, WHP manages over $3 billion in retail sales across its portfolio of brands. WHP is backed by a $350 million equity commitment from funds managed by Oaktree Capital Management, L.P. with a leverage facility provided to WHP by funds and accounts managed by BlackRock.
Photo courtesy Toys R Us
