Comeback for Toys R Us NameAugust 19, 2019 – Media Mention
Greenberg Glusker Partner Brian Davidoff spoke with the San Fernando Valley Business Journal for its August 19th issue about Toys R Us making a comeback as a result of a new concept and joint venture between Toys R Us parent company Tru Kids Brands and B8ta, a startup software-powered experiential retailer.
For Tru Kids, the choice to go smaller and immersive marks a contrast to the brand’s previous history. Toys R Us closed more than 800 stores – mostly big boxes – nationwide as part of a Chapter 11 bankruptcy plan last year, sending ripples throughout the toy industry.
In January 2018, it was reported that Toys R Us owed a total of $7.5 billion to major toymakers like MGA Entertainment in Van Nuys and Mattel Inc. in El Segundo, as well as Hasbro, Lego and Crayola. Fifteen stores in Southern California, including those in Simi Valley and Santa Clarita, ceased operations.
“There was significant infighting as to whether the company should survive or liquidate, and ultimately the lenders didn’t see the value in it and didn’t want to put the money in it,” said Davidoff, turnaround expert at Greenberg Glusker in Los Angeles.
“The brand is a venerable brand. It has a lot of stickiness to it, but the model wasn’t working,” he added.