WAYNE, N.J.— Could Toys ‘R’ Us be making a comeback?
This may be the case after court filings show that top lenders for Geoffrey, LLC decided to cancel the bankruptcy auction of its brand name and other intellectual properties.
Less than four months after the beloved toy company closed its last U.S. stores, controlling lenders have announced a plan to revive the Toys ‘R’ Us and Babies ‘R’ Us brand, the court filing revealed on Monday.
This announcement comes after a five-month marketing effort by an overseeing bank drew multiple bids for assets including Toys R Us, Babies R Us, Geoffrey the Giraffe, website domains and others, but ultimately opted for a reorganization plan.
That proposal would create 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 under the Toys R Us and Babies R Us names.”
The company’s transition to its new owners is now pending approval of the United States Bankruptcy Court, a spokesperson for Toys ‘R’ Us said.
According to a release, the reorganized company will own rights to Toys ‘R’ Us and Babies ‘R’ Us brand in all global markets except Canada.
What the Toys ‘R’ Us of the future might actually look like is still uncertain.
The new owners announced that they are working with partners to create ideas for the new stores in the country and abroad that could bring back these iconic brands in a re-imagined way.
With the news of the brick-and-mortar giant closing its doors, other companies such as Walmart were already taking aggressive steps to fill the void Toys ‘R’ Us would leave.
Walmart announced in early September that it was planning to increase its new toy selection in all stores by 30% and expand its website assortment by 40%.
Rivals like JCPenney and Kohl’s had also announced plans to enhance their offerings. Party City expects to open around 50 toy pop up stores.
Amazon is also “gearing up to take disproportionate share [of the toy market] this holiday season,” Jefferies analyst Stephanie Wissink said in a report last month.
CNN Wire contributed to this report.