Looks like our childhood may not be dead after all, #Roomies. The controlling lenders of #ToysRUs are choosing to cancel the brand’s bankruptcy auction.
That’s right, the same people who wouldn’t let the toy store reorganize during bankruptcy have now decided the brand is “way too valuable” to give up, according to @wsj. They have plans to bring the iconic toy store back to life, which also means #BabiesRUs has been saved too.
The goal is to “create new, domestic, retail operating businesses” while maintaining its licensing of certain products worldwide, according to court documents that were filed on Monday. In other words, they stopped the sale of the company’s name, logo and the famous #GeoffreytheGiraffe, because they have plans to invest in new retail operating businesses.
Toys ‘R’ Us filed for bankruptcy in 2017 and in March, the company announced that all 740 of its U.S. stores would be closing.
The Wall Street Journal noted that the absence of Toys ‘R’ Us has also left an $11 billion hole in the toy industry.
As we previously reported, when the bankruptcy was announced, toy companies such as Hasbro and Mattel experienced drops in their shares, and Lego even reported its first sales drop in 13 years.
Toys “R” Us has been known as one of the last megastores that have been fully dedicated to toys.
The rise of video games and other high-tech toys has given the traditional action figures, dolls and board games a run for their money. Aside from that toy purchases being made through Amazon for lowered prices have made a contribution to decline.
Stores such as Walmart and Target have also seen a struggle when it comes to Hasbro and Mattel products.The future of both toy companies are unknown at the moment, but rumors have been swirling that Hasbro may buy Mattel, causing the two companies to merge. Only time will tell with that one.
We’ll keep you updated on this story, #Roommates.
TSR STAFF: Christina C! @cdelafresh
