A month after ‘Toys R Us’ announced its decision to shut-down all of its stores in the US, UK and Canada to pay off its debts, Isaac Larian, chief executive officer, MGA Entertainment, has submitted a formal bid to buy the retailer in both US and Canada.
According to a report in the License Global, Larian has made a USD 675 million offer for the US arm of the company, whereas, has offered USD 215 million for the retailer’s Canadian counterpart.
According to MGA Entertainment, the funds would come from a combination of Larian’s own assets, other investors and bank debt. Larian has set up a GoFundMe for individuals to assist in his bid, with a goal of USD 1Billion by Memorial Day.
“The time is now. Every day that goes by, the value of Toys ‘R’ Us declines and more people lose their jobs. I did my part and now it’s up to the other side to accept this offer. If they do, the real work will begin. We will make Toys ‘R’ Us an experience in and of itself; a fun and engaging place where families can spend an entire day. Imagine a mini-Disneyland in each neighborhood. The liquidation of Toys ‘R’ Us is going to have a long-term effect on the toy business. The industry will truly suffer. The prospect of bringing the Toys ‘R’ Us experience to a new generation, my new grandson’s generation, is enough to motivate me to save Toys ‘R’ Us,” Larian was quoted as saying from the License Global.
Meanwhile, several media reports suggest bankrupt retailer Toys “R” Us has rejected an $890 million (622.5 million pounds) bid for some of its US stores and locations in Canada from the CEO of the MGA Entertainment.
“I haven’t yet been notified of the bid rejection but if this is true, it is very disappointing,” Larian said in a statement.
Once the largest US toy retailer, Toys “R” Us abandoned a plan to emerge from bankruptcy last month and said it would try to maintain more profitable locations in Europe and Asia as an on-going business while liquidating its US and UK operations.
Earlier, the joint administrators of Toys R Us have announced that the final 75 stores in the UK will close by April 24, affecting more than 2,000 jobs. The 2,054 employees have been told and will be paid up to and including their last day of work.
The global brand went into trouble after the US business filed for bankruptcy last year and subsequently shut 180 stores. The UK branch went into administration in February, putting 3,000 jobs at risk, with “an orderly wind-down” getting underway after the failure to find a buyer.