NEW YORK (BLOOMBERG) - The same Toys 'R' Us Inc lenders that have been taking heat for their role in the decision to liquidate the company in March are now working on bringing the brand back to life, according to new court documents.
In a bankruptcy court filing on Monday, the funds that now control Toys 'R' Us said they'd cancelled a plan to auction off the company's intellectual property. Instead they are seeking to reorganise the assets into a new company that will maintain the current licence agreements and invest in new retail operating businesses.
Maintaining the brands under a new independent US business was the best option with respect to the recovery of the Toys 'R' Us estate, as well as the benefit of other indirect and direct stakeholders, according to the filing. "The qualified bids were not reasonably likely to yield a superior alternative."
The court authorised the cancellation of the auction.
A group of funds that financed Toys 'R' Us lenders during the bankruptcy now control rights to the company's name. That's because the intellectual property served as collateral on their loans. The group includes Solus Alternative Asset Management and Angelo Gordon.
The case is Toys 'R' Us, 18-03090, US Bankruptcy Court, Eastern District of Virginia (Richmond).