MGA Entertainment CEO has put in an offer to Save Toys R Us.
On Friday, Isaac Larian confirmed that he had put in a formal bid of $675m to buy both the US stores as well as $215m to buy the Toys R Us stores in Canada. The funds to purchase both the US and Canadian stores will come from Isaac’s own coffers, additional investors and bank financing.
Isaac recently led the biggest crowdfunding effort to date, aiming to raise $1b via GoFundMe in an effort to rally the community around the cause. Bid amounts were determined after careful due diligence by Isaac, speaking with multiple investors and third party experts. “The time is now. Everyday that goes by, the value of Toys R Us declines and more people lose their jobs. I did my part and now it’s up to the other side to accept this offer. If they do, the real work will begin. We will make Toys R Us an experience in and of itself; a fun and engaging place where families can spend an entire day. Imagine a mini-Disneyland in each neighborhood,” shared Isaac.
The entrepreneur is putting forth his best effort to save the retailer, knowing the void it will leave if Toys R Us ceases to exist.
He added: “The liquidation of Toys R Us is going to have a long-term effect on the toy business. The industry will truly suffer. The prospect of bringing the Toys R Us experience to a new generation, my new grandson’s generation, is enough to motivate me to Save Toys R Us.”
Isaac commented further on the developments over the weekend. A post on LinkedIn read: “The big elephant in the room: if we succeed in buying what’s left in toys r us , would other toy vendors sell the NEW Toys R Us?
1- I am (NOT MGA) investing personally in the NEW Toys R Us. The new TRU will be managed, at arms length, by professional operators and merchants.
2- I have been told by most vendors that they will fully support the NEW entity.
3- What I envision of the NEW Toys R Us is so different and innovative that every vendor would want to see their products in those stores. Most importantly, the NEW Toys R us will be GREAT for the whole toy industry which I LOVE.”