Toys R Us Bankruptcy Auction Canceled … What’s Next?
The Toys R Us bankruptcy auction has been canceled, but what does that mean for the retailer?
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If all goes well, it looks like Toys R Us will be making a comeback. The cancellation of the Toys R Us bankruptcy auction comes as the company’s main lenders say it wasn’t a “probable economic recovery.” What this really means is that no one was willing to make a large enough bid on the company’s assets to warrant going forward with the auction.
Now that the Toys R Us bankruptcy auction is no longer going forward, lenders are still looking for a way to get the maximum value out of the company. As a result, they are planning to revive both the Toys R Us and Babies R Us brands.
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The resurrection plans for Toys R Us includes opening new retail stores. This may come as a surprise to some as the toy retailer shutdown all of its stores this year and went forward with a liquidation sale of its merchandise, shelves and just about everything else in its stores, reports Reuters.
Here are some reactions from Twitter (NYSE:TWTR) about the news that Toys R Us is coming back.
“I hope toys r us do make a comeback so I can tweet them daily to remind them that they died! Is that not how it works?”
“What the heck I watched the Toys R Us in Montana turn into a ghost town and now they bring it back?”
“If Toys R Us is revived I’m gonna die.”
“If toys r us comes back it’ll be the biggest come back of the 21st century.”
“Does Toys R Us really need to be resurrected? Does PE really have that limited of options to invest in? This is like network TV resurrecting long dead 90’s TV shows isn’t it?”
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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