For anyone who was sad to see Toys ‘R’ Us closed its doors, you can rejoice because the once dominating toy retailer is coming back. According to those close to the subject, Toys ‘R’ Us will reopen about a half dozen U.S. stores and an e-commerce site just for the holiday season.
While the store won’t be Toys ‘R’ Us, it will be a reincarnate of the former toy store called Tru Kids Inc. Former Toys ‘R’ Us executive and now Tru Kids Inc. CEO, Richard Barry, has reportedly been pitching the idea at an industry conference.
The stores are slated to be about 10,000-square feet, roughly a third of the size of the brand’s big-box outlets that closed last year and will also have play areas. While Tru Kids Inc. isn’t public news just yet there seems to already be some interest in the company from one of the world’s best-performing toy manufacturers MGA Entertainment Inc.
“This market needs a self-standing toy store, that’s for sure,” said CEO Isaac Larian. “We will sell them inventory.”
Tru Kids Inc. began when lenders led by Solus Alternative Asset Management and Angelo Gordon took control of Toys ‘R’ Us’ assets. However, when they saw no improvement they opted to shutter operations in the U.S. Units in Australia and other regions also closed, with divisions in Asia and Canada acquired by new owners.
This group tried to sell the intellectual property but opted to keep it to garner a better return. As owners of the intellectual property, they have been collecting licensing and other fees from the units still operating and selling them private-label goods. The lenders then formed Tru Kids with the goal of reviving the brand in the U.S. and other regions it exited.