Toys R Us Cancels Auction for Bankruptcy | Financial Buzz

Toys R Us Cancels Auction for Bankruptcy

Toys R Us is planning a comeback after it canceled its original plan to auction off the store chain’s remaining asset on October 1st, 2018. It had planned to auction off its intellectual property including the infamous Geoffrey the Giraffe logo, Babies’ R Us brand, and their website domains to pay off its creditors in attempts to reconstruct around USD 5 Billion worth of debt.

The announcement this week allows for the Company to surge back into a more crowded market than it previously had experienced. With many companies like Amazon (NASDAQ: AMZN) and Walmart (NYSE: WMT) becoming a top source for toy products and companies like Party City (NYSE: PRTY) and Barnes & Noble (NYSE: BKS) emerging onto the toy market, the market has become highly competitive. Toys R Us would need to plan accordingly to the competition. Its plan is to expand internationally and a focus on its private brand business. According to court papers, the new plan would place the emphasis on, “a new, operating Toys R Us and Babies R Us branding Company that maintains existing global license arguments and can invest in and create new, domestic, retail operating businesses.”  The Company aims to develop new retail shops as it can keep its global license agreements.

The overall reconstruction phase will be difficult as Toys R Us enters back into a busy market. It will skip out on the 2018 holiday season as the Company still needs time to furnish its plans.