Owners of Toys R Us brand plan its relaunch | Business

The hedge funds that the Toys R Us brand plan to relaunch the toy retailer as a standalone operation next year, according to people familiar with the matter.

Solus Alternative Asset Management and Angelo Gordon will look to boost capital to help revive the retailer, which is closed to them, and are making plans that include brick-and-mortar rentals for the chain, the people said.

Before opening their own establishments, the funds are partnering with Kroger, the largest publisher in the U.S., to create pop-up sections named Geoffrey's Toy Box in about 600 stores, according to two of the people.

The bigger plan is still in the works, the people said, and could change depending on various factors including financing. Representatives for Angelo Gordon and Solus Alternative Asset Management did not comment.

Rebuilding the Toys R Us brand remains a daunting task, especially since the chain's leases and distribution centers were sold in the liquidation. While a few retailers have found a second life after liquidating, it is usually a part of another store.

Solus and its cohorts did not set out to be merchants. The lenders assumed control of the Toys R Us and Babies R Us brands because of the intellectual property served as collateral on their loans, which the troubled retailer defaulted on after filing for bankruptcy.

The funds may be more expensive, they are more likely to be sold than they are.

The plans for a relaunch of the blame for the company's blame for the company's liquidation and the loss of 33,000 jobs.

"I'm just sick over this," said Cheryl Claude, a former assistant manager who has traveled from New Jersey to protest last month outside the Manhattan offices of Solus and Angelo Gordon.

It's not just the workers who have been hurt. Hasbro said on its October earnings that the effect of the retailer's demise could persist for a few quarters.