Another New Owner For Toys ‘R’ Us: When Are Stores Opening?

Toys “R” Us has found itself in the hands of another owner as the struggling toy store looks to gain a foothold in the retail market.

New York acquisition and investment firm WHP Global announced on Monday that it purchased a controlling interest in Tru Kids Inc., the parent company of the Toys “R” Us, Babies “R” Us, and Geoffrey the Giraffe brands.

As the primary shareholder, WHP will manage Tru Kids business and direct its strategic expansion, which Yehuda Shmidman, chairman and CEO of the company, said, "Our investment in Toys “R “Us reflects our belief and passion for the brand.”

Shmidman, who has been serving as vice-chair of Tru Kids since 2019, continued by saying, “We are thrilled to be taking the reins of the world's leading toy brand at a time when the category is up 16% and consumer demand for toys is at an all-time high. This is a natural fit for WHP, as we can leverage our global network and digital platform to help grow Toys 'R' Us and Babies 'R' Us around the world.”

Toys “R” Us filed for Chapter 11 in September 2017. The toys retailer was unable to emerge from bankruptcy after a dismal holiday season, forcing it into liquidation.

Tru Kids took over the Toys “R” Us, opening two pop-up stores in malls in the U.S., which promptly closed due to low foot traffic amid the COVID pandemic. Target also managed the company’s e-commerce site, which is since being redirected to Amazon, CNBC reported.

“The restructurings took a big toll on the company,” Shmidman told CNBC. “And then COVID is, hopefully, once in a century. But now we’re getting past those two things. And the sky’s the limit.”

Toys “R” Us does have plans to reopen stores as Shmidman told the news outlet ideally, a number are planned to be opened ahead of the holiday season in North America in a range of formats that could include flagships, pop-ups, airport locations, or mini-shops inside other retailers locations. The number of stores to be opened was not revealed by WHP at the time of writing.

“There are so many malls that will no longer be in the future, so we don’t need to be there,” Shmidman told CNBC. “But we could be in malls that do have traffic. ... So we really have an opportunity not just to capture that experience for toys that people are yearning for, but also capture where [people] want to shop. That will be very interesting post-COVID.”

While the financial terms of the deal between WHP and Tru Kinds were not disclosed, WHP is backed by $350 million in equity from Oaktree Capital Management.