Geoffrey the giraffe is spotted on the side of a Toys “R” Us truck on March 17, 2005 in Colma, California.
Justin Sullivan | Getty Images
Toys R Us has a new owner again.
The brand management company WHP Global announced on Monday that it has acquired a controlling interest in Tru Kids, the parent company of Toys R Us, Babies R Us and Geoffrey the Giraffe.
“We are engaged in the branding industry, and Toys R Us is the most trusted, trusted and beloved toy brand in the world,” Yehuda Shmidman, Chairman and CEO of EAP, said in an interview. “We’re coming out a year where toys are just on fire. … And for Toys R Us, the US is really an empty canvas.”
Shmidman has been vice president of Tru Kids since 2019. Tru Kids, backed by Solus Alternative Asset Management and funds managed by private equity group Ares Management, bought the trademarks and intellectual property from Toys R Us after it was filed in Chapter 11. bankruptcy protection in September 2017. Toys R Us finally could not get out of bankruptcy on its own after a crippling 2017 holiday period that drove it to liquidation.
Tru Kids has since tried to stimulate a number of strategies, including opening two pop-up locations in the United States using the b8ta technology platform. But those that were closed earlier this year were due to weak shopping center traffic, which was suppressed especially during the Covid pandemic. The wholesale retailer Target powered Toys R Us’ website has been around for a while. Currently, all purchases on ToysRUs.com are redirected to Amazon.
“The restructuring has taken a huge toll on the company,” Shmidman said. “And then Covid is hopefully once in a century. But now we get past the two things. And the sky is the limit.”
In the future, EAP has said it will run the global Tru Kids business and lead its expansion. Toys R Us and Babies R Us together have more than 900 brand stores in more than 25 countries – in parts of Europe, Asia, Africa, Australia and the Middle East.
In North America, Shmidman said the plan is to reopen Toys R Us stores – ideally a number before this holiday season. He said it could come in different formats: flagships, pop-ups, airport locations or retail stores in other stores. EAP has not yet set a number for how many places it wants to open in the US
“There are so many malls that will not be there in the future, so we do not have to be there,” Shmidman said. “But we can be in shopping malls that do move. … So we really have the opportunity to not only capture the experience for toys that people crave, but also capture where [people] wants to shop. It will be very interesting after Covid. ‘
EAP is backed by a $ 350 million equity commitment from funds managed by Oaktree Capital Management.
Financial terms of the transaction were not disclosed.