Toys ‘R’ Us Lenders Plan Brand Revival

According to Bloomberg, efforts are afoot to bring Toys R Us back! They write:

In a bankruptcy court filing Monday, the [Toys “R” Us Inc. lenders] said they had canceled a plan to auction off the company’s intellectual property. Instead, they are seeking to reorganize the assets into a new company that will maintain the current license agreements and can invest in new retail operating businesses.

This is a dicey proposition, but Bloomberg offers some good news:

“Bringing back dormant brands to life is not easy,” said Michael Stone, chairman and co-founder of licensing company Beanstalk. But he says Toys “R” Us may have a shot, since it’s still remembered, often nostalgically, by today’s parents who grew up with it, along with its famous jingle and Geoffrey mascot.

Finally, one tidbit that is frustrating is this:

“The company did generate operating profits -- and without debt, its profitability would be easier to maintain,” said Seth R. Freeman, senior managing director at GlassRatner Advisory & Capital Group

Another viable company wrecked by bad management. You can (and should) read the whole article HERE.

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