Billionaire Toy Maker's Bid to Save Toys"R"Us Stores Rejected
Toys“R”Us Inc.’s lawyers and advisers have shot down an 11th-hour offer from a billionaire toy maker that would have kept some of its U.S. stores open, according to a person familiar with the matter. The Wall Street Journal reports that Isaac Larian, founder of Bratz dolls maker MGA Entertainment, Inc., came forward last week with a $675 million bid for the bankrupt retailer’s U.S. stores. The offer included an additional bid of $215 million for the retailer’s Canadian operations. Two other bids for Toys"R"Us’ Canadian operations, from unspecified parties, also didn’t qualify, said the person, who asked not to be identified discussing the confidential procedure.
Total Retail's Take: This story underscores how important retailers can be to certain manufacturers. Larian has argued since Toys“R”Us filed for bankruptcy in September that the death of the toy retailer would be a fatal blow for many companies in the toy industry. He has also said he has a personal motivation — a desire to share the Toys“R”Us experience with his new grandson's generation, and future Toys“R”Us kids. Larian said in a statement emailed to The Record and NorthJersey.com that he hasn't been notified that his bid had been rejected.
Larian made headlines last month when he announced a crowd-funding campaign designed to raise $1 billion to make a bid for Toys “R” Us. The campaign invited the public to be a part of the opportunity to #SaveToysRUs, and its goal was two-fold: ensuring that generations to come can "always be a Toys"R"Us kid" and saving employee jobs that are at stake should the company cease operation.