Toys “R” Us Comeback in Works as Bankruptcy Auction Canceled - ABI

There might be a second act for Toys “R” Us, which shut down hundreds of stores over the summer: A group of investors said in a bankruptcy court filing that it's scrapping an auction for Toys “R” Us assets, The Associated Press reported. The investors believe they'll do better by potentially reviving the toy chain, rather than selling it off for parts. The investors said they'll work with potential partners to develop new ideas for stores in the U.S. and other countries "that could bring back these iconic brands in a new and re-imagined way." Toys “R” Us suffocated under a staggering $5 billion debt load before liquidating its U.S. assets this year. A leveraged buyout hobbled the company, and hundreds of stores were shuttered in June to the dismay of children and numerous generations of one-time children. The seeming end of Toys “R” Us rippled through the toy industry and beyond. When the company closed the doors at some 800 stores, more than 30,000 people lost their jobs. Less than a month later, Mattel said it would cut more than 2,200 jobs partly because of lost sales to Toys “R” Us. Economists were caught off guard that month by the slow growth in jobs. In addition to the debt it was saddled with by its private-equity owners, Toys “R” Us found itself in a battle to its seeming death with and other big toy sellers.

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