Topic: TRU cancels bankruptcy, will revive its brand (Read 402 times)

napseeker · « **on:** October 02, 2018, 05:41:04 PM »

https://www.theglobeandmail.com/business/article-toys-r-us-cancels-bankruptcy-auction-plans-to-revive-brand/

Quote

The top lenders of Toys "R" Us have decided to cancel the bankruptcy auction of its brand name and other intellectual property assets and instead plan to revive the Toys "R" Us and Babies "R" Us brand names, a court filing on Monday showed.

The bankrupt retailer’s debtors aim to open a new Toys "R" Us and Babies "R" Us branding company that maintains existing global license agreements and can invest and develop new retail shops.

When I read the article, it gave me strong concerns about how this might affect TRU Canada. We already know that one reason for TRU Canada's inability to do much innovation was because they were being financially drained of their cash by having to contribute to TRU USA's debt.

If this development means that TRU Canada is back to having to make payouts to the US parents, then ugh.

edit: from user wishfulthinking on the TFW forums:

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Like I said in another thread, they're keeping the intellectual property because they think they can milk the international stores for more money. But in the U.S., they sold off all their infrastructure. Let me repeat, they sold off all their infrastructure.

At best, we may see the TRU name branding exclusive toys at Dillard's or Party City or something - but I just can't see the investors who own the brand buying back all the infrastructure at a loss after they sold it off. Not to mention the damage the previous owners caused with vendor relationships...

Wedge1021 · « **Reply #1 on:** October 03, 2018, 10:34:37 PM »

I haven't been able to find much (any) analysis on this from the standpoint of how/if it will affect the Canadian operations. From what I've read though, I'm thinking at most TRU Canada may have to pay royalty/license fees to the US group in order to continue to use the TRU branding. Otherwise, they are no longer connected back to the old company - there's a completely separate owner here now who owes nothing to the US group as far as revenue, etc. goes.

cash_fan · « **Reply #2 on:** October 05, 2018, 05:15:49 PM »

Yeah, the apron strings are cut. If US stores open up again they will not be able to take capital from the Canadian company.

skywalker1973 · « **Reply #3 on:** October 09, 2018, 09:04:10 PM »

I doubt they'll reopen u.s stores, they just finished clearing out remaining stock and store fixtures. I could see them doing popup stores during Christmas season or in areas that were consistently lucrative.

jjreason · « **Reply #4 on:** October 09, 2018, 11:39:17 PM »

Or having a business arrangement with department stores, allowing them to use the Toys R Us branding, logos & Geoffrey for their seasonal toy departments.

Darth Woo · « **Reply #5 on:** October 10, 2018, 09:59:12 AM »

They're calling it Geoffrey's Toy Box. I cant help to think that this was planned. The easiest way to deal with such a huge debt is to start over. Sucks for the long time workers as they can hire all new ones (or past employees) but start them all off on minimum wage.

Wedge1021 · « **Reply #6 on:** October 10, 2018, 07:14:51 PM »

Here's a link to the article:
http://news.toyark.com/2018/10/10/geoffreys-toy-box-is-the-new-toys-r-us-320146

Of note for us: "The reorganized company will own rights to the Toys “R” Us and Babies “R” Us brands in all markets globally, with the exception of Canada."

So the Canadian company owes them absolutely nothing.

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Author Topic: TRU cancels bankruptcy, will revive its brand (Read 402 times)

napseeker

TRU cancels bankruptcy, will revive its brand

Wedge1021

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