A Toys R Us outlet in Durban. Picture: JACKIE CLAUSEN
A Toys R Us outlet in Durban. Picture: JACKIE CLAUSEN

New York — The lenders who have been taking heat for their role in the liquidation of Toys R Us in March are now working to bring the brand back to life, according to new court documents.

In a bankruptcy court filing on Monday, the funds that now control Toys R Us said they had cancelled a plan to auction off its intellectual property. Instead, they are seeking to reorganise the assets into a new company that will maintain the licence agreements and invest in new retail operating businesses.

That is the best option for the recovery of the Toys R Us estate, and the benefit of other indirect and direct stakeholders, according to the filing. "The qualified bids were not reasonably likely to yield a superior alternative."

The court authorised the cancellation of the auction. The group includes Solus Alternative Asset Management and Angelo Gordon.

But it may prove difficult to ramp up US operations again, given the fallout from the protracted bankruptcy process.

Big suppliers, including Mattel and Hasbro, have found new distributors and customers have moved on.