A billionaire just bid $890 million to save Toys R Us

Share

Larain runs toy-maker MGA Entertainment.

Toys "R" Us announced early in March that they were planning to close all 735 stores and liquidate their inventory.

Toys "R" Us did not comment on the proposed purchase. MGA Entertainment making a US$890 million bid for Toys R Us stores in Canada and the U.S. Larian, who had said he would use his own money for the bid, said he was baffled and said they were public companies thinking about the short term.

If Larian's bid is accepted, the funds for the stores will come from his own money as well as from additional investors and bank financing. He, along with other investors, also plans to bid $215 million for the Canadian business of 82 stores.

"The liquidation of Toys "R" Us is going to have a long-term effect on the toy business", said Larian, whose privately held company is based in Van Nuys, California.

More news: Harvey, Irma, Maria, Nate removed fro WMO hurricane list
More news: Jaguar Land Rover to cut 1000 jobs after 'slump due to Brexit'
More news: Facebook's (FB) "Buy" Rating Reiterated at JPMorgan Chase

In March, the company announced it would close or sell all of its 735 us stores. Toys R Us Inc.is an American toy retailer headquartered in New Jersey, USA.

However, Larain says the liquidation of Toys "R" USA would have a negative impact on the toy industry.

Toys R Us recently began liquidating its more than 700 stores in the United States after efforts to restructure the business through bankruptcy failed.

Previously, Larian tried to raise $1 billion to save Toys "R" Us through a crowdfunding campaign.

"Imagine a mini-Disneyland in each neighborhood", Larain explained.

Share