Maintaining the brands under a new independent U.S. business is the best option for the Toys “R” Us estate and for other indirect and direct stakeholders, according to the filing, which says bids from outside investors for the assets “were not reasonably likely to yield a superior alternative.”

A group of funds that financed Toys “R” Us lenders during the bankruptcy now control rights to the company’s name and that of Babies “R” Us, because the intellectual property served as collateral on their loans. Toys “R” Us’s proposed reorganization plan contemplates “a new, operating Toys ‘R’ Us and Babies ‘R’ Us branding company that maintains existing global license agreements and can invest in and create new, domestic, retail operating businesses” under the brand name, court papers said. Toys “R” Us filed for Chapter 11 bankruptcy protection in September last year, hoping to restructure some US$5 billion in debt, much of which stemmed from a US$6.6 billion leveraged buyout by private equity firms in 2005. The retailer said in court papers filed Monday that while it received qualified bids for the assets—which includes the brand names of Toys “R” Us, Babies “R” Us, registry lists, website domains, Geoffrey the Giraffe, and other assets—it has opted to forgo the auction.
Toys "R" Us lenders cancel the bankruptcy auction of its brand name and other intellectual property assets and instead plan to revive the Toys "R" Us and Babies "R" Us brand names.