Toys R Us, the iconic toy retailer that collapsed in 2018, shuttering 100 stores in the UK and 800 in the US, has acquired another new owner.
Tru Kids Inc, which bought the brands and intellectual property rights from Toys R Us when it filed for bankruptcy, has itself gained a new majority shareholder – brand management company WHP Global (WHP).
WHP has acquired a controlling interest in Tru Kids, and its Toys R Us, Babies R Us and Geoffrey brands, plus around 20 others. The Toys R Us and Babies R Us brands alone are said to generate over $2 billion in global retail sales annually, with nearly 900 branded stores and eCommerce sites in over 25 countries.
WHP will manage the global Tru Kids business going forward, it says, directly overseeing its strategic expansion. Part of those plans, according to reports by CNBC, will include a bricks and mortar comeback. With a number of Toys R Us stores proposed for various locations across North America. Some may even open before the end of this year.
Yehuda Shmidman, chairman and CEO at WHP (and vice-chairman of Tru Kids since 2019), said: “Our investment in Toys R Us reflects our belief and passion for the brand.
“We are thrilled to be taking the reins of the world’s leading toy brand at a time when the category is up 16 per cent and consumer demand for toys is at an all-time high. This is a natural fit for WHP, as we can leverage our global network and digital platform to help grow Toys R Us and Babies R Us around the world.”
Tru Kids existing investors include funds managed by Solus Alternative Asset Management and Ares Management Corporation. WHP is backed by a $350 million equity commitment from funds managed by Oaktree Capital Management, with a leverage facility provided by BlackRock.
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