Is Toys R Us staying open in the great white north? It’s a possibility as news broke this week that a huge purchase offer has rolled in from a Canadian company.
Toys R eh
If you haven’t been following this drama, I’ll fill you in quick. Toys R Us is closing its doors all over the world. The toy retailer has bottomed out, and although a few stores might be bought in overseas territories, they’re pretty much done in the US. Or, maybe not.
But first, let’s talk Canada.
Fairfax Financial Holdings Ltd. has put in a bid to buy the Canadian stores of the former giant. Their bid? A cool $300 million CDN, which translates to $236.8 mill USD. So far, it’s been accepted, and it looks like the deal will be proceeding. If for some reason, someone else butts in and bids higher though, TRU could still change their minds.
Though Fairfax would have the chance to match or beat any fresh offer. So with that, it kind of looks like TRU will indeed be rolling on in Canada, under the same name. Where the brand might go from there, is unknown. I suppose it could return to the US eventually, under Fairfax.
Not that the US assets of the company haven’t had bidders. Toys R Us actually rejected a bid from MGA Entertainment’s Isaac Larian for a whopping $675 million. Apparently, that amount was too low to be considered. Interestingly, Larian also looks to have bid for the Canadian stores, though offer too was too low, and beaten out by Fairfax.
Still, Larian sounds fairly interested. Might he come back with a bid that could overtake what liquidation firms have so far come in at? And if so, would that mean that Toys R Us might also continue in the US? Could be.
Stay tuned, we’ll have more for you as it develops.
Source: The Toy Book