The controlling lenders of US retailer Toys ‘R’ Us have reportedly revealed plans to restore the brand name along with its Babies R Us after cancelling a bankruptcy auction of the company’s intellectual property assets.
A court filing was quoted by Reuters as saying that the bids ‘did not offer “probable economic recovery” to creditors as well as benefits to stakeholders’.
The retailer’s debtors have plans to open a new Toys ‘R’ Us and Babies ‘R’ Us branding company.
The new company will focus on maintaining existing global licence agreements as well as boost presence by investing and developing new retail shops, according to the filing.
In July this year, the retailer entered a settlement agreement with creditors groups, including vendors, in a move to liquidate in bankruptcy.
The company also filed documents regarding the settlement with the court of Eastern District of Virginia for the same.
It also planned to dispose of its assets such as brand names registry lists, website domains, Geoffrey the Giraffe and other assets through the intellectual property auction.
Toys R Us closed its last store in the US following its decision in March this year to file a motion seeking bankruptcy court approval. The company liquidated its inventory in all 735 of its stores in the US and Puerto Rico.