Toys R Us May Come Back To VA In Surprise Move

VIRGINIA — The defunct Toys R Us chain soon could come back to life, but it's unclear how many of the retailer's Virginia locations — if any — might reopen. The retailer filed court papers this week that canceled a bankruptcy auction of the Toys R Us brand name and other intellectual property assets, including Geoffrey the Giraffe.

The company's top lenders felt that its bids in the auction were insufficient and "not reasonably likely to yield a superior alternative," according to records filed with the U.S. Bankruptcy Court for The Eastern District of Virginia. The goal now is to create a "newly established, independent U.S. business, including, without limitation, expected expansion of employment," court documents state.

Instead, lenders are considering a reorganization plan that would permit a new Toys R Us and Babies R Us company to use the company's name and other assets to relaunch, The Wall Street Journal reported.

Geoffrey LLC, which handles Toys R Us trademarks and other intellectual property, issued a press release Tuesday stating that it was actively working with "potential partners to develop ideas for new Toys R Us and Babies R Us stores in the United States and abroad that could bring back these iconic brands in a new and re-imagined way."

The move comes months after thousands of Toys R Us workers lost their jobs when stores across Virginia and the United States finally closed after a year-long battle to keep the stores open.

Despite the efforts from billionaire CEO Isaac Larian, Toys R Us did not accept his bid to save 274 U.S.-based stores and the thousands of jobs they support.

Larian would also have kept the company's headquarters open in New Jersey as part of the bid, CNN Money reported recently. Between 7,000 to 10,000 jobs would have been saved if the headquarters and stores remained open.

Toys R Us filed for Chapter 11 bankruptcy in September and announced March 15 it would close or sell all of its 735 U.S. stores, including in Virginia. Overall, about 31,000 people were expected to lose their jobs.

The bankruptcy filing came amid slumping sales and mounting debt, which grew to about $5 billion. The once-popular chain faced increasing competition from Amazon, Walmart and Target. The chain was set to close about 180 of its stores, or about 20 percent.

A federal bankruptcy judge ruled late last year that Toys R Us may pay 17 executives about $14 million in incentive bonuses if it hits a certain earnings amount. Attorneys representing the company argued that the bonuses would help executives focus on increasing sales during the past holiday season.

Toys R Us began liquidating inventory at 170 of stores nationwide, including in Virginia, in February.

The company began "winding down" operations at its remaining U.S. stores about six weeks later.

These were the Toys R Us locations in Virginia:

• Alexandria
• Baileys Crossroads
• Chantilly
• Charlottesville
• Chesapeake
• Colonial Heights
• Danville
• Fairfax
• Falls Church
• Fredericksburg
• Lynchburg
• Manassas
• Midlothian
• Newport News
• Norfolk
• Richmond
• Roanoke
• Springfield
• Sterling
• Virginia Beach
• Winchester
• Woodbridge

— With reporting by Patch editors Dan Hubbard, Kara Seymour and Eric Heyl.

• Toys R Us Will Sell Or Close Remaining VA Stores: Report
• What May Replace Closed Toys R Us Locations In Virginia
• Temporary Store Opening At Former Kingstowne Toys R Us

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File photo by Elizabeth Janney.