Billionaire Toy-Company CEO Puts In $890M Bid For Toys R Us

WAYNE, NJ — Toys R Us received an $890 million bid Friday from the same man who launched a $1 billion fundraising campaign to save the once-dominant retailer.

Isaac Larian is CEO of MGA Entertainment Inc., creators of Bratz dolls and Little Tikes, among other popular toys. His bid includes $675 million for the Toys R Us stories in the United States and $215 million for its Canada stores. The money is coming from Larian directly, additional investors and bank financing, MGA announced in a statement Friday.

"We will make Toys R Us an experience in and of itself," Larian said in the statement. "A fun and engaging place where families can spend an entire day. Imagine a mini-Disneyland in each city."

Larian launched a $1 billion fundraising campaign last month to try and save Toys R Us. He put up $200 million of his own money. Just $59,000 has been donated since the campaign went live 22 days ago.

Larian's efforts come a month after the Wayne-based Toys R Us announced it would sell or close all of its U.S. and Canadian stores and six months after it filed for Chapter 11 bankruptcy protection in federal court.

Toys R Us was already slated to close 180 U.S. stores when the March announcement was made.

The bankruptcy filing came amid slumping sales and mounting debt, which grew to about $5 billion, although Toys R Us announced at the time that the "vast majority" of its 1,600 worldwide locations were profitable.

The retailer struggled to compete with online retail giant Amazon and stores like Walmart, The New York Times reported.

Toys R Us had a $400 million debt payment due this year and was "burning through cash," the Times reported, and hired law firm Kirkland & Ellis to devise a strategy moving forward.

A federal bankruptcy judge ruled late last year that Toys R Us may pay 17 executives about $14 million in incentive bonuses if it hits a certain earnings amount. Attorneys representing the company argued that the bonuses would help executives focus on increasing sales during the past holiday season.

Toys R Us received a commitment of more than $3 billion of debt financing from lenders, including JP Morgan Chase and some of its existing lenders, the company announced. This money is expected to "immediately improve" Toys R Us's financial health, the company announced.

Twitter users posted their memories about going to Toys R Us stores growing up after the company announced the closings.

"Growing up in the 80s, there was nothing better than visiting #ToysRUs with your family," said Twitter user Adam Rackoff. "Just getting to see and touch the packaging was all a kid needed. Alas, another brick and mortar retail chain is closing."

That is what Larian is trying to save.

"There is nothing quite like the joy and awe of a child walking through the aisles of a Toys R Us store," Larian said. "I want to preserve that innocent experience for future generations."

Related: CEO Of Bratz Dolls-Maker Leads Effort To Salvage Toys R Us
Related: Toymakers Launch Last-Ditch Effort To Save Toys R Us
Related: Toys R Us Files Chapter 11 Bankruptcy, Outlines Strategy
Related: Toys R Us Closing Is The End Of An Era
Related: Toys R Us Files Chapter 11 Bankruptcy, Outlines Strategy

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