American toy industry giant, MGA Entertainment has placed a bid to purchase the Canadian Toys ‘R’ Us stores. The bid comes as an effort to save the Canadian Toy ‘R’ Us operations after it was announced that the global toy retailer would be shutting down all of its stores within the United States and the United Kingdom.
Multiple Bids Made For Toys ‘R’ Us Canada
While MGA Entertainment’s offer is said to be one of many non-binding bids made for the ailing toy retailer, it is the only offer that is currently known to the public.
Toys ‘R’ Us debtors to have stated that the current aim is to sell the company’s Canadian assets as quickly as possible, setting April 16 as a closing date for sale. It was further detailed that if several competing bids are made for Toys ‘R’ Us Canada, an auction will be held to determine a new owner
Toys ‘R’ Us Bankruptcy
Toys ‘R’ Us filed for bankruptcy protection in September 2017 in both the US and Canada, after it was revealed that the company had accumulated billions in debt over the last decade due to failed business ventures.
Although Toys ‘R’ Us did attempt to employ a reinvestment plan that involved ambitious actions to remodel toy stores into play places, these efforts failed to improve finances, leading the company to file for liquidation last week.
Despite the global toy retailer having declared bankruptcy in Canada, representatives of Toys ‘R’ Us Canada have stated that its stores operate separately from those in the US and continues to remain a profitable business venture.
Whether or not MGA Entertainment will become the new owner of Toy ‘R’ Us Canada remains to be seen.