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Toys "R" Us may live again

Toys "R" Us backs out of auctioning off their brand.
Photo credit:
Flickr

A collective groan was heard around the United States when toy retailer Toys "R" Us broke the news that they would be closing all of their stores back in June, but on Monday the controlling lenders say they pulled out of the bankruptcy auction. 

The Wall Street Journal reports that the business leaders "intend to the revive business behind the Toys ‘R’ Us and Babies ‘R’ Us brand names.” Court papers filed indicate the retailer had been offered qualified bids for both the toy store chain and its Babys R Us brand, but have decided to forgo selling them. 

News publication Polygon reports that the retailer's goal is to “create new, domestic, retail operating businesses."

Initially, the company said they were filing for bankruptcy protection in September 2017. 

In June all Toys "R" Us stores were shuttered and their website went dark. This affected about 500 employees throughout the San Diego area. 

However, it's closure had a giant impact on the industry too, its absence left "an $11 billion hole in the toy industry," according to the The Wall Street Journal.

Despite the good news, the fallout from their closure is that old retail spaces have since been sold or leased to other companies and the consumer may have already moved on.

Also, licensed brands such as Hasbro and Mattel have found other markets to sell their products.