(WAND) – Toys R Us lenders have canceled a plan to sell assets in a bankruptcy auction, potentially opening the door for the business to be revived.
A report from Reuters referenced a court filing, which says Toys R Us debtors are now considering opening a new Toys R Us and Babies R Us branding company. They’d look to keep global license agreements active and create new stores.
Reuters says lenders also want to grow the international reach of Toys R Us.
The company said it would shut down all stores in the U.S. and sell other operations in March after first filing for Chapter 11 bankruptcy in September of 2017. It would have sold brand names, website domains, Geoffrey the Giraffe and other assets had a sale gone through.
Reuters says bids to buy Toys R Us assets weren’t as good as a brand revival plan because they didn’t address stakeholder benefits and “probable economic recovery” for creditors. The company had an amount close to $5 billion in debt to restructure when it filed for bankruptcy.
