A bankruptcy auction for Toys R Us in the USA been cancelled, with discussions taking place about reviving the brand.
Toy R Us lenders have cancelled the bankruptcy auction with plans to revive the business, according to C Net. Solus Alternative Asset Management and Angelo Gordon are part of the same group of hedge funds that cancelled the reorganisation of the Toys R Us business earlier this year. The global retailer, one of the largest stockists of LEGO products, went bankrupt earlier this year.
According to the report, the lenders envision “a new, operating Toys R Us and Babies R Us branding company that maintains existing global license agreements and can invest in and create new, domestic, retail operating businesses”. The company is currently operating under the name Geoffrey, LLC.
The hedge fund group has received bids for the brands, mascot and website domain name, but is instead opting to set up “a newly established, independent US business”. Given that all of the US retail locations have now closed, this would essentially be a new retailer using the Toys R Us branding.
Given that there are still outstanding debts that companies are attempting to call in and thousands of employees lost their jobs, the notion of Toys R Us finding funds for a relaunch will not be without controversy.