No redemption: Toys ‘R’ Us rejects bid submitted by billionaire

FILE

FILE

Toys “R” Us’ lawyers and advisers have rejected a formal bid made by a toy tycoon to purchase 274 U.S. stores.

Isaac Larian, the billionaire founder and CEO of MGA Entertainment, submitted a bid of $675 million to buy 274 Toys “R” Us in the U.S. He also bid another $215 million to buy 82 stores in Canada. Larian’s company produces toys like Bratz dolls, Little Tikes and LOL Surprise.

Larian's offer didn't meet the qualified bid threshold under the court-approved auction procedures, according to The Wall Street Journal.

Larian told the WSJ on Tuesday that he hadn’t been informed yet that the bid wasn’t qualified.

“If that’s the case, it’s really a shame that they’re going to let this company go into liquidation instead of at least responding and saying we need more or we need this,” he said.

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Toys “R” Us, Inc. voluntarily filed for relief under Chapter 11, in September 2017. In mid-March, Toys “R” Us officials said it was getting ready to close more than 700 U.S. stores, including Babies “R” Us, in a move expected to impact as many as 33,000 workers.

At the beginning of 2018, the chain had more than 800 stores before announcing in January that it would shutter 180 stores.

"To our loyal customers: We've seen an amazing outpouring of love and support in recent days and we truly appreciate it," the company wrote on Twitter. "Our stores are open for business, ready to bring joy to children wherever we can, and to help new and expecting parents navigate raising a family."

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