Billionaire bailout: Issac Larian tries one last time to save Toys ‘R’ Us

It wasn't over, it still isn't over.

New York Weekend Edition /
Mar.March 24, 2018 03:00 PM

From back: Toys ‘R’ Us in Montarville, QC, Ryan Gosling and Rachel McAdams in The Notebook. (Credit: Mike Kalasnik, Funny Gifs)

After Toys ‘R’ Us threw in the towel and announced it would close all 735 American stores, billionaire Issac Larian has come up with a last-ditch effort to save some of the toy retailer’s stores.

He’s bringing $100 million of his personal funds, according to Bloomberg, and he’s also launched a GoFundMe campaign to garner external funds, which has currently attracted over $200 million in funds — though the majority was donated by Larian himself, according to USA Today. Though Larian is the CEO of MGA Entertainement, the maker of Bratz dolls and Little Tikes, he says MGA is not involved in his campaign.

“There is a lot of value in the Toys ‘R’ Us name, a lot of value in all the assets that they have,” Larian told Bloomberg. “If Toys ‘R’ Us is not here, I think the toy business as a whole will have a devastating year — this year and the following year.”

Toys ‘R’ Us’ announcements of liquidation has already had a dramatic effect on toy makers such as Mattel and Hasbro — both companies’ stocks dipped, Mattel by 47 percent, Hasbro by 14 percent, as Bloomberg reports. Numbers weren’t available for MGA, which is privately held.

Best case scenario, Larian is hoping to save about 400 stores, which leaves hundreds more up for grabs. According to Bloomber, other possible buyers include Amazon.

Toys ‘R’ Us filed for bankruptcy in September with a $5 billion worth of outstanding debt. The retailer employs an estimated 33,000 people. [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
Two years after its IPO fail, WeWork will go public
Two years after its IPO fail, WeWork will go public
Two years after its IPO fail, WeWork will go public
Marcus & Millichap says it was the target of a cyber attack
Marcus & Millichap says it was the target of a cyber attack
Marcus & Millichap says it was the target of a cyber attack
2307 Beverley Road in Flatbush, Brooklyn (Getty)
Sears closing up shop in New York City
Sears closing up shop in New York City
All Storage CEO Jay Schuminsky and CBRE CEO Bob Sulentic (All Storage, CBRE)
All Storage courts $1B-plus sale with CBRE
All Storage courts $1B-plus sale with CBRE
Getting orders to doorsteps in as little as 15 minutes requires companies to lease lots of space close to customers in targeted markets. (iStock)
Rapid-delivery startups gobble up space in NYC
Rapid-delivery startups gobble up space in NYC
The Centre at Purchase at 1, 2, 3, 4 Manhattanville Road with George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
Westchester office park owned by George Comfort & Sons slated for auction
Westchester office park owned by George Comfort & Sons slated for auction
Attorney General Letitia James and A&E Real Estate CEO James Patchett (Getty, iStock)
A&E pays just $510K in lead-paint settlement
A&E pays just $510K in lead-paint settlement
Seeding from recapitalization of 25 health care properties
KKR, Cornerstone in $1B JV to develop health care facilities
KKR, Cornerstone in $1B JV to develop health care facilities
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...