New York
CNN Business
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Toys R Us may be making a comeback.
The company closed all U.S. stores in June as part of its bankruptcy liquidation. But the owner of the company’s remaining assets is considering relaunching the business and the associated Babies “R” Us brand, the company revealed in a court filing this week.
Toys “R” Us originally planned to auction off the rights to its name and the rights to the Babies “R” Us brand. Documents show bidders have already made offers to them. But the company’s owners decided to cancel the auction.
The company said it was considering “forming a new company to operate the Toys R Us and Babies R Us brands,” the filing said. The plan will “create new domestic retail operations under the Toys R Us and Babies R Us names, as well as expand its international presence and further develop its private label business.”
Details of when and how the brand will be revived were not revealed.
The fact that other bidders are interested in purchasing the name does not necessarily mean that others want to revitalize it. Companies often buy the brands of out-of-business competitors in bankruptcy court to ensure that the brands are not used again by new competitors. Details of who plans to buy the Toys R Us brand were also not disclosed in the bankruptcy filing.
Toys R Us filed for bankruptcy a year ago and plans to use the restructuring process to get out of debt and continue operating. But after a disastrously bad Christmas shopping season, the company announced in March that it would close its remaining 800 U.S. stores and cease operations.
This resulted in approximately 31,000 workers losing their jobs. The 70-year-old retailer folded in June.