Billionaire's Efforts Aren't Enough To Save Toys R Us

WAYNE, NJ — Despite the efforts from billionaire CEO Isaac Larian, Toys R Us has not accepted his bid to save 274 U.S.-based stores and the thousands of jobs they support.

Larian would also keep the company's Wayne headquarters open as part of the bid CNNMoney reported recently. Between 7,000 to 10,000 jobs would be saved if the headquarters and stores remain open.

Toys R Us filed for Chapter 11 bankruptcy in September and announced March 15 it would close or sell all of its 735 U.S. stores. About 31,000 people are expected to lose their jobs when the stores close, including 1,100 at the Wayne headquarters.

Larian is the CEO of MGA Entertainment, the maker of Bratz dolls and Little Tykes toys. In March, he and other investors pledged $200 million and tried to raise another $800 million in crowdfunding in a bid to save the stores.

Larian told CNNMoney that if Toys R Us does not exist, "the whole toy industry will be hurt for a long time."

"I'm an optimist. I think things are going to work out," Larian said in the report. "The people handling the sale, I think they're genuinely trying to save the stores here in the US. It's going to be awkward if Toys "R" Us Canada is saved, if it is saved in central Europe and Asia, and but the market where it started goes into liquidation."

Larian dropped his bid for Toys R Us Canada after being outbid by Fairfax Financial Holdings. Toys R Us will sell operations in Germany, Austria, and Switzerland to Smyths Toys for $194 million.

One of Toys R Us' youngest customers has taken it upon herself to save the company.

Delilah Jane Farrell Lattanzi, an 8-year-old Woodbridge Township girl, was so upset by the news of Toys R Us' bankruptcy that she announced she wants to try and save her local Toys R Us store in Iselin.

"I will always be a Toys R Us kid! My mom grew up with it, my grandmother grew up with it and I want my kids to," the little girl told News 12 New Jersey. "I can't imagine my kids not knowing what Toys R Us is. It would just be mind-blowing."

Toys R Us released a statement saying they were touched by the young lady's gesture.

"The outpouring of support, from both kids and adults, for Toys R Us has been tremendous. We appreciate the love and kindness and will be forever grateful to our customers, like this wonderful girl in Woodbridge," read a company statement, according to CBS Philadelphia.

Babies R Us stores have closed and liquidation sales of up to 40 percent off continue at both Babies R Us and Toys R Us stores.

The bankruptcy filing came amid slumping sales and mounting debt, which grew to about $5 billion. The once-popular chain faced increasing competition from Amazon, Walmart and Target. The chain was set to close about 180 of its stores, or about 20 percent.

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.

Related: Toys R Us Files Chapter 11 Bankruptcy, Outlines Strategy
Related: Everything Must Go: NJ Toys R Us, Babies R Us Closing Sale On Now

With reporting by Kara Seymour and Eric Heyl, Patch Staff

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Photo: Getty Images