April 13 (UPI) — A private investor has offered nearly $900 million to buy the Toys ‘R’ Us retail toy chain, the company said Friday.
Isaac Larian, CEO of MGA Entertainment, formally offered to buy Toys ‘R’ Us stores in the United States for $675 million, and Canadian stores for another $215 million.
The funding will come from Larian, other investors and bank financing, MGA statement said. If the purchase is accepted, Toys ‘R’ Us stores will continue to operate under its iconic name, the investors said.
Toys ‘R’ Us announced last month it would close all U.S. stores, affecting about 800 locations and 33,000 jobs. It added stores in other countries would also be liquidated.
The company filed for bankruptcy in September, noting it struggled to pay $8 billion in debt from a 2005 leveraged buyout. Toys ‘R’ Us has struggled to compete against big-box and online toy retailers, like Amazon and Walmart.
“The time is now. Everyday that goes by, the value of Toys ‘R’ Us declines and more people lose their jobs,” Larian said in a statement. “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.”