Toys “R” Us – Cancels IP Auction, Stakeholders Plan Relaunch of Toys “R” Us and Babies “R” Us Brands

October 1, 2018 – Toys “R” Us notfied the Court of its intention to cancel its scheduled intellectual property auction and its plans for a Toys “R” Us and Babies “R” Us branding company [Docket No. 5058]. The Debtors explain, “On June 28, 2018, the Court entered the Order (I) Amending the U.S. Intellectual Property Bidding Procedures Order to Include International Intellectual Property Assets and Extend the Sale Timeline and (II) Granting Related Relief [Docket No. 3601] (the ‘IP Bidding Procedures Amendment Order’), amending the U.S. Intellectual Property Bidding Procedures Order to include certain additional intellectual property assets…notwithstanding the receipt of Qualified Bids for certain of the Intellectual Property Assets, the Debtors have determined, in consultation with the Consultation Parties, to cancel the Intellectual Property Auction and reorganize Debtor Geoffrey pursuant to the Second Amended Chapter 11 Plans of Toys Delaware Debtors and Geoffrey Debtors [Docket No. 4542] (the ‘Plan’), which Plan, among other things, contemplates a new, operating Toys “R” Us and Babies “R” Us branding company that maintains existing global license agreements and can invest in and create new, domestic, retail operating businesses under the Toys “R” Us and Babies “R” Us names, as well as expand its international presence and further develop its private brands business….The Selling Debtors, in consultation with the Consultation Parties, have determined that the Qualified Bids were not reasonably likely to yield a superior alternative to the Plan, including with respect to: (i) the probable economic recovery to creditors of the Selling Debtors’ estates; and (ii) the benefits to other direct and indirect stakeholders of maintaining the Toys “R” Us and Babies “R” Us brands under a newly-established, independent U.S. business, including, without limitation, expected expansion of employment opportunities for workers and merchandising opportunities for toy and other vendors.”