Toys & R & # 39; They are already looking at the American renaissance as it cancels an auction of bankruptcy

It seems that Geoffrey the Giraffe starts at two o'clock, while the Toys "R" Us hedge fund group has canceled its long-awaited auction and has presented a plan for reopening and operating under the same name.

The group operating under the name Toys "R" Us stated in documents filed in the US Bankruptcy Court of the Eastern District of Virginia on Monday, Oct. 1 that it had received "qualified offers" for its intellectual property assets but that he was considering reorganizing himself.

After months of liquidation, Toys' R & # 39; Us and Babies' R & # 39; They closed their more than 700 establishments permanently in the United States at the end of June. Lenders have stated in court documents that these qualified bids for its assets "were not reasonably likely to provide a superior alternative to the plan".

This plan is to maintain "Toys' brands in Us and Babies' R 's in a new independent American company, including, without limitation, the United States. Expected expansion of employment opportunities for workers and marketing opportunities for toy sellers and others, "court documents read.

"… is considering, among other things, to create a new branding company, Toys 'R & Us and Babies' R, which maintains existing global licensing agreements and can invest in new national retail companies and create new businesses "Us and Babies" R & # 39; Us ", as well as expand its international presence and expand its private label business . "

This is as much detail as the court document goes into that it mentions no timetable, no information for former employees or anything else in the documents of the court.

The Wall Street Journal reports that the closure of Toys' R & # 39; It has created a $ 11 billion hole in the toy industry and about 33,000 unemployed people. These workers were fighting for severance pay since the doors were shut down in June, and the mall will report that a $ 20 million fund will be created and distributed to the fired individuals.

The first bankruptcy of Toys' R & # 39; It was held in September 2017, after what we described as a disastrous Christmas season. In May of this year, CEO David Brandon told employees that all of his stores would be either sold or closed.

In 2016, Toys & # 39; R & # 39; It reported net sales of $ 11.5 billion and opened 29 new stores in the United States and closed 16 stores.

At home in Michigan, there were 22 Toys "R" Us stores and 11 Babies "R" Us stores across the state. As many of them have seen, branding has been removed from many of these storefronts and some buildings have been put up for sale or seem to be.