Offers have been made to save remaining Canadian Toys "R" Us stores
Last week we got the official announcement that Toys “R” Us would be closing down their US operations, close to 750 stores in total. The US stores employs roughly 30,000 people, and once held the toy market in the palms of their hands. However, in the ever-developing world of online shopping and discount stores, the once high and mighty retailer just couldn’t keep up. After announcing the closures, CEO David Brandon said that the next steps were to try and bundle its Canadian business with about 200 stores, and attempt to find a buyer.
Well, there may be some hope for Canadian Toys “R” Us stores on the horizon. Debtors have been reaching out to more than 20 interested parties in an attempt to find a buyer for the Canadian arm of the retailer. And thankfully, US court filings show that “multiple” non-binding offers have allegedly been made for the 82 Canadian stores.
The actual number of companies who have put forth offers is unknown at this time, as many have signed non-disclosure agreements and have been using an electronic data room for the potential bids.
However, one company has come forward publicly to announce their bid, MGA Entertainment. The California-based toy maker who owns the Bratz, Little Tikes, and Num Nums brands, views the Canadian market as a good business opportunity.
"Toys "R" Us Canada is a good business," MGA CEO Isacc Larian said in a statement last week. "They run it efficiently, and have good leadership. At the right price, it makes economical sense."
The jury is still out as to how the Canadian stores will fair in the future, and if a new buyer will put a stop to what some view as an inevitable end to the toy giant. But, it is reassuring to know that there are those out there who believe it is worth taking under their wing.