Can toys, and their retail brands, come back to life? Investors who purchased the remaining assets of Toys ’R Us through a bankruptcy auction believe they can, such that they have announced plans to reintroduce a new version of the same company to U.S. markets. The toy retailer’s bankruptcy was a well-publicized event that left both consumers and toy suppliers shocked and dismayed. But an investor group, led by the former CEO of Toys ’R Us, has created a new company called Tru Kids that aims to regain the interest of these groups. Noting the massive gap left in the toy and game market in the aftermath of Toys ’R Us’s bankruptcy, Tru Kids plans to leverage the existing brands, which also include Geoffrey and Babies ’R Us. It anticipates that it can open smaller, 10,000 square foot stores that will prioritize experiences to draw shoppers. Despite this optimism, the renewal faces several challenges, including the aggressive efforts by competitive retailers like Walmart and Amazon following the bankruptcy to ensure the loyalty of toy buyers to their own stores. Furthermore, many suppliers were badly harmed when Toys ’R Us went bankrupt, left with unpaid invoices and substantial losses. They may be less than willing to supply the new company, with its repeated leadership, or at least might not offer sufficiently good terms to enable Tru Kids to compete.

Source: Associated Press, The New York Times, February 12, 2019