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\nToys \u2018R\u2019 Us Lenders Plan Brand\u2019s Revival
\nControlling lenders canceled a bankruptcy auction for the brand name and other intellectual-property assets<\/p>\n
\nToys \u2018R\u2019 Us Lenders Plan Brand\u2019s Revival
\nControlling lenders canceled a bankruptcy auction for the brand name and other intellectual-property assets<\/p>\n
The retailer said in court papersfiled Monday that while it received qualified bids for assets\u2014which include the brand names of Toys \u201cR\u201d Us, Babies \u201cR\u201d Us, registry lists, website domains, Geoffrey the Giraffe and other assets\u2014it has opted to forgo a much-anticipated bankruptcy auction for its brand name and other intellectual-property assets.<\/p>\n
Toys \u201cR\u201d Us\u2019s proposed reorganization plan contemplates \u201ca new, operating Toys \u2018R\u2019 Us and Babies \u2018R\u2019 Us branding company that maintains existing global license agreements and can invest in and create new, domestic, retail operating businesses\u201d under the brand name, court papers said.<\/p>\n
The hedge fund group has determined the qualified bids wouldn\u2019t likely \u201cyield a superior alternative to the plan,\u201d because of factors including the recovery to creditors, as well as the benefits to other stakeholders in maintaining the brands \u201cunder a newly-established, independent U.S. business.\u201d<\/p>\n
The pivot comes after the company consulted with its controlling parties\u2014a group of lenders that includes Solus Alternative Asset Management and other hedge funds\u2014that were behind the retailer\u2019s decision to close its doors. The intellectual property is considered \u201ca valuable piece\u201d of the lenders\u2019 collateral,\u201d according to court papers. Solus has denied playing any role in the liquidation of the retailer. A company spokesman declined to comment, and a Solus spokesman didn\u2019t immediately respond to a request for comment.<\/p>\n
Control of the retailer\u2019s intellectual property has pitted the lender group, including Solus, against Toys \u201cR\u201d Us\u2019s foreign-subsidiary bondholders. Toys \u201cR\u201d Us\u2019s intellectual property also plays a role in the sale of its Asian business, as any acquirer of the business would have to negotiate the use and cost of the intellectual property, or be subject to legal action. A group of bondholders has placed an opening bid on the Asian business.<\/p>\n
The absence of Toys \u201cR\u201d Us has also left an $11 billion hole in the toy industry, and hundreds of toy vendors without a major bricks-and-mortar platform to sell their goods.<\/p>\n
The decision to shut 800 U.S. Toys \u201cR\u201d Us stores also left 33,000 people without jobs. In recent months, those workers have been fighting for severance pay. The Wall Street Journal reported Friday that Toys \u201cR\u201d Us private-equity backers Bain Capital and KKR & Co. will be creating a $20 million fund to be distributed to the workers.<\/p>\n
We\u2019ll keep all you Toys R Us kids updated as the story unfolds!<\/p>\n","protected":false},"excerpt":{"rendered":"
Toys \u2018R\u2019 Us Lenders Plan Brand\u2019s Revival Controlling lenders canceled a bankruptcy auction for the brand name and other intellectual-property assets The retailer said in court papersfiled Monday that while it received qualified bids for assets\u2014which include the brand names of Toys \u201cR\u201d Us, Babies \u201cR\u201d Us, registry lists, website domains, Geoffrey the Giraffe and […]<\/p>\n","protected":false},"author":11,"featured_media":2619,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[574],"tags":[56,460,2096,33,156,2105,2103,34,32,31,35,1298,1299,6,70,73,2104],"class_list":["post-2617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-stories","tag-breaking-news","tag-business","tag-business-news","tag-butler-enterprises","tag-culture","tag-for-the-culture","tag-geoffrey","tag-ladysteele","tag-ladysteele-inc","tag-lovepeacenslander","tag-mistahearlgrey","tag-news","tag-news-stories","tag-nyc","tag-planet-ill","tag-pop","tag-toys-r-us"],"jetpack_publicize_connections":[],"yoast_head":"\n