Toys "R" Us Inc. has refused an offer from MGA Entertainment Inc.'s founder to retain part of its North open American stores, according to a person with knowledge of the matter ,
Isaac Larian's offer was not qualified under the auction rules approved by the judge who monitors bankruptcy, the person said. Two other offers for Toys "R" Us in Canada, by unspecified parties, were also unqualified, said the person who had asked not to be advised on the confidentiality process.
The company is still trying to get at least one deal nailed this week, so it can set a floor for an upcoming auction of its Canadian business, the person said. The rejection of Larian's offer was previously reported by the Wall Street Journal.
Larian had said he would pay $ 675 million for business in the US and $ 215 million for sales outlets in Canada. The would-be rescuer is the CEO of MGA, which sells toys like Little Tikes and Bratz.
"We worked hard to make a fair, fair deal for Toys & # 39; R Us USA to keep it going." and save thousands of dollars, Larian said. "At least we expect them to come back to us with a fair counteroffer."
The Wayne, New Jersey-based company filed for bankruptcy in September, hoping to reduce debt and turn around business. But after the bad sales during the holiday season, she decided to liquidate her US activities and try to sell her Canadian business at a Wednesday auction. It was unclear Tuesday afternoon whether the company wanted to conduct the auction as planned, or wait until it has a so-called stalking horse, or lead, bidder.
In a separate process, Toys "R" Us also tries to sell its Asian business.
The case is Toys "R" Us, 17-34665, US Bankruptcy Court, Eastern District of Virginia (Richmond).