Post by Admin on Oct 10, 2018 0:38:27 GMT
icv2.com/articles/news/view/41553/creditors-drove-toys-r-us-liquidation-seek-start-new-stores
CREDITORS THAT DROVE TOYS 'R' US TO LIQUIDATION SEEK TO START NEW STORES
Auction to Sell Brands Canceled
Posted by Milton Griepp on October 9, 2018 @ 4:54 am CT
The secured creditors that drove Toys 'R' Us to liquidate its stores in bankruptcy now plans to use the company’s brands for new retail ventures, according to the Wall Street Journal. The company cancelled an auction of the brands and other intellectual property assets planned for last week, saying in court papers that although it had received qualified bids for the IP assets, the controlling hedge fund group has determined that creditors can get more money by retaining the brands, maintaining license agreements with Toys 'R' Us chains outside the U.S., and investing in "new, domestic, retail operating businesses" under the brands.
The first uses of the company’s brands will come before the holidays, according to Toy Book. Multiple retailers, including a "prominent regional Midwestern retailer" will launch store-in-store concepts as Geoffrey’s Toy Box. The company could also use or license its Toys 'R' Us brand to open a new chain of stand-alone retail stores in the future.
The company’s own retail space is gone, sold off as part of the liquidation of stores.
Getting supply for a new chain could be a problem. Toy and game companies owed around $800 million by the bankrupt retailer recently agreed to settle claims for a minimum of 22 cents on the dollar (see "Toys ‘R’ Us Creditors To Get 22 Cents on the Dollar").
Some 33,000 employees of the bankrupt chain were laid off without severance, although private equity firms Bain Capital and KKR & Co. recently promised to contribute $20 million to a fund for workers.
CREDITORS THAT DROVE TOYS 'R' US TO LIQUIDATION SEEK TO START NEW STORES
Auction to Sell Brands Canceled
Posted by Milton Griepp on October 9, 2018 @ 4:54 am CT
The secured creditors that drove Toys 'R' Us to liquidate its stores in bankruptcy now plans to use the company’s brands for new retail ventures, according to the Wall Street Journal. The company cancelled an auction of the brands and other intellectual property assets planned for last week, saying in court papers that although it had received qualified bids for the IP assets, the controlling hedge fund group has determined that creditors can get more money by retaining the brands, maintaining license agreements with Toys 'R' Us chains outside the U.S., and investing in "new, domestic, retail operating businesses" under the brands.
The first uses of the company’s brands will come before the holidays, according to Toy Book. Multiple retailers, including a "prominent regional Midwestern retailer" will launch store-in-store concepts as Geoffrey’s Toy Box. The company could also use or license its Toys 'R' Us brand to open a new chain of stand-alone retail stores in the future.
The company’s own retail space is gone, sold off as part of the liquidation of stores.
Getting supply for a new chain could be a problem. Toy and game companies owed around $800 million by the bankrupt retailer recently agreed to settle claims for a minimum of 22 cents on the dollar (see "Toys ‘R’ Us Creditors To Get 22 Cents on the Dollar").
Some 33,000 employees of the bankrupt chain were laid off without severance, although private equity firms Bain Capital and KKR & Co. recently promised to contribute $20 million to a fund for workers.