According to documents filed in bankruptcy court, Toys R Us’ lenders cancelled the bankruptcy auction of intellectual property assets after receiving qualified bids for assets by investors seeking to revive the chain.
Reuters reports that instead of just selling off the brand name and assets like their original plan, lenders now want to “open a new Toys ‘R’ Us and Babies ‘R’ Us branding company that maintains existing global license agreements and can invest and develop new retail shops.”
Maintaining the brands under a new independent U.S. business is the best option for the Toys R Us estate and for other indirect and direct stakeholders, according to the filing, which says bids from outside investors for the assets “were not reasonably likely to yield a superior alternative.”
Toys R Us liquidated its U.S. business earlier this year, after filing for Chapter 11 reorganization following a leveraged buyout that hobbled the company.
According to The Wall Street Journal, the toy industry has seen an $11 billion hole grow without a place for toys to be sold.
