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PHILADELPHIA (CBS) – Don’t call it a comeback, but Toys“R”Us may be on the verge of being resurrected.
The giant toy retailer closed all its stores earlier this year, after filing for Chapter 11 bankruptcy following a leveraged buyout that hobbled the company.
But in court papers filed Monday, a bankruptcy auction was cancelled, with the intention of creating a new Toys“R”Us and Babies “R” Us branding company.
A group of hedge funds, the same group that pulled the plug on the retailer’s reorganization this year, is behind the possible revival.
CBS News reports the group said Tuesday it’s scrapping an auction for intellectual property assets because it didn’t receive any bids that were better than its own.
The investors said they’ll work with potential partners to develop new ideas for stores in the U.S. and other countries “that could bring back these iconic brands in a new and re-imagined way.”