Toys ‘R’ Us could be coming back
WAYNE — Don't stick a fork in Toys 'R' Us just yet.
Months after the former Wayne-based toy retailer closed its 800 stores and laid off 33,000 workers, the hedge funds that shut the doors canceled a bankruptcy auction to sell off its assets, according to court documents posted by the Wall Street Journal.
The documents indicate that the hedge funds - Bain Capital, KKR and Vornado - are considering a "new" Toys R Us and Babies R Us that would create new, domestic, retail operating businesses. They would also expand the international presence of the two brands and further develop its private brands business.
The companies believe that the bids received for intellectual properties such as the actual brand names, websites and Geoffrey the Giraffe cannot provide a superior alternative to their own plan, the report said.
It's not clear where the new retail locations would go as many of the former locations of the retailer have been put up for sale.
Most of the laid-off employees did not receive any severance package despite, in some cases, years of service. Bain and KKR & Company are working to create a $20 million severance fund, according to the Wall Street Journal.
Many of the company's former employees in the final days of the company banded together to fight for severance with a group called Rise Up Retail. A rally by employees at the beginning of June brought out both of New Jersey's U.S. senators did not succeed in getting a package at that time.