Nostalgia has not turned into dollars to create a future for Toys R Us. There was also no effort to recruit other toy manufacturers.
A campaign by a billion dollar toy expert who pledged $ 200 million with other investors in hopes of rescuing part of the bankrupt chain has shrunk, with just $ 59,000 more in three weeks. These include three pledges of $ 1,000 each, about two dozen from $ 101 to $ 500, and the remainder for smaller amounts.
Isaac Larian, CEO of privately held MGA Enterprises, which manufactures the popular LOL Surprise dolls, said other toy companies were initially interested in joining the effort but declining. Larian, who said he would use his own money for the offer, called it disappointing and said that they were public companies considering the short term. But he said on Thursday that he still wants to bid for more than 300 stores in the US and Canada
The liquidation of Toys R Us "will have a long term impact on the toy business," he said. "The toy industry will suffer." The problems of the company have already shaken some big toy manufacturers like Mattel and Hasbro. The planned liquidation would have a greater impact on smaller toy companies, which would have relied more on the chain.
Bob Wann, CEO of private toy company PlayMonster and chairman of the Toy Industry Association trade group, expects a flurry of toy company takeovers, but says the industry will be able to recover lost sales over the next few years.
Toys R Us' efforts have been a big hit since Larian's plans to save 400 US stores or more, half of which will be liquidated in the coming weeks. Larian told the Associated Press that he would hand over a formal $ 675 million bid to the bankruptcy court on Friday to buy 274 Toys R Us stores and use the brand name. The money comes from its own coffers, other investors and bank financing. He plans, along with other investors, to provide $ 250 million for the Canadian business of 82 stores.
MGA Entertainment, which also produces the Bratz dolls and Little Tikes and has its headquarters in Van Nuys, California, has launched nearly 1
The Liquidation of Toys R Us, which threatens more than 30,000 jobs, would be the end of a company that is burdened with $ 5 billion in debt and is suffering from the shifting of flows including online shopping. A hearing before the US Bankruptcy Court in Virginia was scheduled on Thursday afternoon.