Toys R Us: Can It Make A Comeback?

The defunct Toys R Us may be positioning itself for a comeback after liquidating all its assets last year. On Jan. 20, Tru Kids Inc. acquired The Toys R Us, Babies R Us, and Geoffrey brands as well as more than 20 other toy and baby brands, the company said in a statement.

Headquartered in Parsippany, New Jersey, Tru Kids employs a series of former Toys R Us and Babies R Us employees, which Richard Barry, the new president and CEO of Tru Kids and the former chief merchandising officer at Toys R Us, told CNBC was a “much tighter team overall.”

“We have an incredible team focused on bringing Toys R Us and Babies R Us back in a completely new and reimagined way, so the U.S. doesn't have to go through another holiday without these beloved brands," Barry said in a statement.

While still a work in progress, Tru Kids, is exploring its retail options, including store locations, pop-up shops, and partnerships, Barry told CNBC. The business would even consider joining forces with Amazon as Barry told CNBC that he would "not take anything off the table at all.”

Tru Kids will focus on expanding the Toys R Us brand throughout the U.S. while it continues its worldwide sales growth, which generated more than $3 billion in 2018. Toys R Us has 900 global store locations and a thriving e-commerce business.

The company said in a statement that its brand power still remains, especially throughout countries such as Asia, Europe, Africa, and the Middle East. It plans to open 70 stores in 2019 in Asia, India, and Europe as well as initiating the development of “new e-commerce platforms in several key markets.”

With Toys R Us being criticized for failing to invest digitally as well as in-stores, Tru Kids will make technology a key focus of the company in addition to in-store experiences, and customer service, Barry told CNBC. The company will also have to reestablish its toymaker relationships, which fell to the wayside after Toys R Us liquidated and failed to pay vendors after its dismal 2017 holiday season.

"Despite unprecedented efforts to capture the U.S. market share this past holiday season, there is still a significant gap and huge consumer demand for the trusted experience that Toys R Us and Babies R Us delivers," Barry said in a statement.

“We have a once-in-a-lifetime opportunity to write the next chapter of Toys R Us by launching a newly imagined omnichannel retail experience for our beloved brands here in the U.S. In addition, our strong global footprint is led by experienced and passionate operating teams that are 100% focused on growth.”

With Barry at the helm of Tru Kids, he will work alongside Matthew Finigan, CFO; James Young, EVP of global license management and general counsel; and Jean Daniel Gatigonol as SVP of global sourcing and brands Yehuda Shmidman will serve as vice chairman, advising on global strategy and execution.

Tru Kids portfolio includes the Toys R Us, Babies R Us, Geoffrey the Giraffe, Journey Girls, Fastlane, True Heroes, You & Me, Imaginarium, and Just Like Home brands.