Toys R Us acquired, plans to reopen in the US

Brand management company WHP Global announced Monday that it has acquired a controlling stake in Tru Kids, the parent company of the Toys R Us, Babies R Us and Geoffrey the Giraffe brands.

“We are in the brand business, and Toys R Us is the most credible, trusted and beloved toy brand in the world,” Yehuda Shmidman, chairman and CEO of WHP , said in an interview . “For Toys R Us, the U.S. is really a blank canvas.”

Tru Kids tried a variety of strategies to spark momentum, including opening two pop-ups in the U.S. with the help of technology platform b8ta. But it closed those stores earlier this year due to poor mall traffic, which has been particularly dampened during the pandemic .

For some time , the Toys R Us website was powered by large retailer Target. Currently, all purchases on Toys R Us are redirected to Amazon.

Looking ahead, WHP said it will manage the global Tru Kids business and guide its expansion. Toys R Us and Babies R Us have 900 branded stores and e-commerce sites in 25 countries across Europe , Asia , Africa , Australia and parts of the Middle East.

In North America, Shmidman said the plan would be to open Toys R Us stores again before this holiday season .

WHP is backed by a $350 million equity commitment from funds managed by Oaktree Capital Management .

WHP Global announced that it has acquired a controlling interest in Tru Kids, the parent company of Toy Kids "R" Us, Babies "R" Us, Geoffrey the Giraffe and more than 20 related consumer toy and baby brands. The brand acquisition and management company, which also owns the Anne Klein and Joseph Abboud brands, said it will manage the global TRU business and guide its strategic expansion.

WHP is led by CEO and Chairman Yehuda Shmidman, who has also served as TRU Vice Chairman since 2019.

Tru Kids, which is backed by funds managed by Solus Alternative Asset Management and Ares Management, purchased certain intellectual property and intellectual property of Toys "R" Us after it filed for Chapter 11 bankruptcy protection and continues to liquidate its stores in the United States.

In late 2019, Tru Kids opened two Toys "R" Us stores at Westfield Garden State Plaza in Paramus, New Jersey, and at the Houston Galleria. But the pandemic didn't allow it to return to physical retail, and the company eventually closed both locations. The Toys "R" Us website in the U.S. remains up and running, with orders fulfilled by Amazon.

Data from the NPD Group shows that retail sales of toys in the United States reached $25.1 billion in 2020 , up 16% from the previous year , and 2020 is regarded as an "unprecedented year" for the U.S. toy industry.

Shmidman said: “Our investment in Toys“R” Us reflects our belief in and passion for the brand. We are excited to take over the world’s leading toy brand at a time when the category is growing 16% and consumer demand is at an all-time high. This is a natural fit for WHP as we can leverage our global network and digital platforms to grow Toys“R” Us and Babies“R” Us around the world.”

The plan is to open Toys "R" Us stores again in North America in time for the 2021 holiday shopping season, Shmidman said in an interview.