SAN ANTONIO – There may be a second act for Toys R Us, the retail wonderland for children that turned off the lights at hundreds of stores for what was thought to be the final time this summer.
After joining the parade of retailers that never recovered from the recession and radical changes in the way Americans shop for toys and everything else, a group of investors is planning a comeback for Geoffrey the giraffe and his crew.
The group, made up of secured lenders, said in a bankruptcy court filing Tuesday that it’s scrapping an auction for Toys R Us assets despite receiving a number of qualified bids.
The hedge fund group that held the auction now believes that it stands a better chance of a realizing a return on its investment by potentially reviving the toy chain, rather than selling it off for parts. The group will attempt to establish a “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 toy retailer had closed its final 200 stores back in June, costing thousands of employees their jobs and leaving a sizable hole in the toy retailer market.